After launching affordable, mid-segment and luxury housing projects in Dubai, Danube Group now has its eyes set on expanding to the United Arab Emirates (UAE)’s Abu Dhabi and Ras Al-Khaimah, due to interest from Indian investors in these real estate markets.
Rizwan Sajan, founder and chairman of Dubai-based Danube Group, said that Indian investors comprise almost 30-40% of the company’s clientele in Dubai. Considering interest from Indian investors in the region, the company is planning to launch projects in Abu Dhabi and Ras Al-Khaimah.
Dubai-based Sajan is also popularly known as the 1% man as his firm is famous for its 1% payment plan. Under this plan, homebuyers make a 20% down payment and 1% per month for the next 80 months. The property is delivered to the buyer in three years. The balance payment is made to the company after the buyer has received possession of the property.
“The Dubai real estate market is doing well and we have launched at least 12 projects in the last two years. While we are tied up in the Dubai market for now, going forward we may look at Abu Dhabi and Ras Al-Khaimah,” Sajan told HT Digital.
“Apart from UAE, there is a lot of scope in Saudi Arabia too, but as I said we do not have immediate plans outside Dubai,” Sajan said.
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30-40% top buyers of properties are Indian
Almost 30% to 40% of the company’s top buyers are from India. A majority of them are from North India.
“Majority of our buyers are from North India, Mumbai, Gujarat and South India. After India, the second largest base of our clients are from the United Kingdom (UK) followed by Russia and China,” Sajan said.
The company also facilitates the 10-year Golden Visa opportunity for eligible homeowners, subject to specific terms and conditions.
Will Danube properties enter the Mumbai real estate market?
While there are no concrete plans to enter Mumbai, “if given a choice, Mumbai and Hyderabad real estate markets interest me. In Mumbai, I prefer Bandra, Khar area. If given an opportunity I am open to redeveloping old buildings,” said Sajan.
“I am not sure if the monthly 1% payment plan will work or not in the Mumbai real estate market. But that is something we will think about if and when we decide to enter the Mumbai market,” he said.
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Are property prices in Dubai at par with Mumbai?
Danube Properties constructs affordable housing units in Dubai, prices for which start from around ₹1.90 crore.
“A major part of our inventory is in the range of ₹2 crore and ₹10 crore. We also offer luxury sky villas which are priced above ₹10 crore,” he said.
“If you look at our sizes, they are better than what you get in Mumbai. Our 1 BHK apartment is 700 sq ft (carpet). My 2 BHK offerings are 1,000 sq ft, 3 BHK units are 1,500 sq ft and 4 BHK sky villas are spread across an area of 3,000 to 3,500 sq ft,” he said.
In Dubai, the buyer has to pay only 4% of the total cost of the house. Developers too have to pay 4% of the total land cost to the land department in taxes, he said.
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Danube Group was established in 1993. Danube Properties entered the Dubai market in 2014. Its development portfolio currently comprises 28 projects with a combined value exceeding $ 5.44 billion. Danube Group also deals in building materials, home decor, and hospitality solutions.
