Investors get highest return on property in Dubai, says Danube chairman

Rizwan Sajan said investors will get a minimum of 8% to 10% return on investment when buying property in Dubai

Rizwan Sajan said investors will get a minimum of 8% to 10% return on investment when buying property in Dubai.

Rizwan Sajan said investors will get a minimum of 8% to 10% return on investment when buying property in Dubai.

Investors who buy property in countries such as India or China will not get the same return as they would if they invested in the Dubai property market, according to Danube Group founder and chairman Rizwan Sajan.

The UAE-based Indian billionaire, one of the region’s biggest suppliers of building material, stepped foot inside the Dubai property sector two and a half years ago when he launched a series of affordable luxury residential projects under his real estate arm Danube Properties, in order to provide investors with a smaller budget to buy property.

Speaking to Arabian Business, he said, “In India, wherever you invest, there is always a good return as far as property, because the property price goes up. In Mumbai for example, I’m from Mumbai, the property prices are very high. I invested at the right time there, so we are in good appreciation of the property. Unfortunately, you don’t get the same returns there as you do in Dubai.

“If you want to invest in any property in Dubai, even if you don’t want to stay [in the city], even if you just want to invest, you will get at least 8% to 10% of the ROI (return on investment). The prices may go down, but minimum you will get 8% to 10% as rental income, which is very, very good compared to any property in the world."

He added the Dubai property market is the safest to invest in today, as buyers “don’t have to worry about somebody taking away your property, some legal litigation. It’s all very clean, very transparent, where you can blindly trust an investor in Dubai.”

Read more - Material man: How Danube's Rizwan Sajan is mastering Dubai's property market

Sajan’s eight property projects, which fall under the Danube Group, have helped record turnovers of $1.4bn per year and maintain 5% to 6% growth despite an economic downturn that saw major construction players exit the market.

His projects include Dreamz by Danube, a residential townhouse community in Dubai that stretches over 700,000 square feet.

Average prices in Sajan’s projects cost about AED1,000 per square foot in areas such as Al Furjan and Studio City, while properties in Business Bay are about AED1,250 to AED1,400 per square foot.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

Posted by: Dubai agent

8-10% net returns are readily available in some areas of Dubai, the article isn't specific on this, its not achievable in prime areas of Dubai, Downtown for instance and villa communities but with the likes of IMPZ, it is.

Posted by: RayC

This is mis-leading statement. Barring a handful, in today's market, there is hardly any property which is fetching 8-10% return even with the value appreciation factor taken in. Actual statistics will prove this point.

Posted by: Patrick

I do not think the figures of 8-10% are realistic, if you add in the service charges, hidden fees, etc.

Posted by: Hansol

This is the same fairy tale that has been propagated for years. You only get rental return if there is some one to rent it to. When supply out strips demand your rental return is 0%.

All comments are subject to approval before appearing

Further reading

Features & Analysis
Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Investor interest in real estate investment trusts (REITs) has...

Forgotten fees: the challenge of investing in Dubai property

Forgotten fees: the challenge of investing in Dubai property

Investors attracted to low service charges at some Dubai residential...

3
Dubai real estate: which way will it go?

Dubai real estate: which way will it go?

In this special report, Arabian Business analyses the state of...

3
Most Discussed
sponsoredTracking