By Neil Halligan
Apartments will be priced in the region of $109,000, said Shaikhani Group MD Mahmoud Shaikhani
Dubai-based developer Shaikhani Group has revealed plans to launch a tower of apartments with just studio apartments.
The current trend of affordable housing in Dubai has led developers to launch more competitively priced projects.
Danube Group has built its entire portfolio on affordable housing and has sold out every project it has launched.
Following that trend, Shaikhani Group has said it will launch an entire block of studio apartments in one of its upcoming launches.
“In the Arjan project, we have completely planned it on studio design — all the apartments are studio,” Mahmoud Shaikhani, managing director of Shaikhani Group told Arabian Business.
“There’s a parking space with each of the 260 to 300 units. The studio sizes are different, starting from 400 sq ft to 700 sq ft. The majority will be 400-500 sq ft, but the range is about AED400,000 [$109,000] per apartment. Most people can’t afford the AED700,000 [$190,000] to AED800,000 [$218,000] price for an apartment.”
Rizwan Sajan, Danube Group chairman and founder, speaking at the recent Cityscape Global, said property in Dubai has never been priced better, and urged people to buy now, regardless of whether it as a Danube project or not.
“At the moment it's a very good time to buy a property. I always believe that Dubai is a very small country and it's going to be full very fast. When it starts filling, you will not be able to buy a property,” said Sajan, speaking to Arabian Business at Cityscape.
“Today, because it's at the bottom of prices, it's a buyers' market. One should look around for deals any go and invest in Dubai property because I'm not sure whether you'll get the same property next year or after that. You don't have to buy only from Danube, go and buy anywhere, but invest in Dubai.”
He suggested people should invest in affordable housing rather than paying high rent particularly if there are plans to stay long-term.
"Rental is very high over here. If you have long-term planning, why not buy your own property and live in that? At least after 8, 9 or 10 years the property will belongs to you, rather than paying lifelong rental and the property doesn't belong to you. We are targeting that middle segment market where people are staying in rental and trying to convert them to buy our property.”
Danube Properties, the development arm of Danube Group, started two years ago and has launched six projects in that time, all of which have sold been sold out.
Life long rental?
How can one say if they are living here lifelong?
this is a very clever move....provided that it's priced nicely.
An entire building that will be mostly tenanted???? This is a sign of desperation . As as rule studio apartments are the worst yielding of all property assets. These become run down buildings and tend to be glorified staff accommodation in the end.
There is no real demand for end users in Dubai and the fact that a developer has resorted to a all studio model highlights that fact even more. Did anyone not learn the lessons of similar type of products at international City in Dubai?
When a developer decides he cannot sell small 1 Bedrooms suitable for single purchasers - say around 500 square feet - than it is time to just walk away. In an over hyped market - fueled by Cityscape launches - buildings far off the beaten track end up being terrible investments.
Rizwan Sajan : â€œ.... I always believe that Dubai is a very small country and it's going to be full very fast. When it starts filling, you will not be able to buy a property,â€ Hmmm, for starters Dubai is an emirate not a country and has he seen the amount of virtually free desert there is to be built on for 100's of miles beyond emirates road?
I think we need to have a moritorium on halting all projects for the next 5 years .
Lets focus on improving our present offerings- like installing more solar panels, using wind farms in the desert, creating more green spaces, trees along all footpaths, more public recreational facilities, promoting more sports development facilities and improving overall quality of life.
We need to create a city with more life and soul- especially Abu Dhabi
Yep, with a population density of 99 pop per sq km most people would say that UAE is relatively empty.
And if you want to compare cities not countries, Singapore reaches more than 7,000 and monaco and Macau around 20,000
Oh well the sweet smell of desperation. Waiting for the "no wisdom no knowledge" brigade.
May I suggest, before anyone buys any real estate, do some research about history of the developer, the owners of the developer, and the track record of the developer. Have people forgotten about developers as such back in the 2007-2010 era?
One might suggest that with the ESCROW law and tighter regulations that they are 100% bullet proof now? Ehhh wrong, what if the developer can't sell the project and gets stalled? Have you looked at your rights to do with refunds? Project cancellations? Project take overs etc...
My way of looking at this is to review the developers in the recession, what did they do their clientele? Did they deliver what they promised? Did they delay? How long delay? Any compensation? Did they give swap options? Swap to what? How was their general treatment of the customers?
If you seek the answers to these questions I guarantee that you would only approach Emaar. No one else!! Even Emaar wasn't perfect (in fact far from it) but in Dubai, they were the best...
Very true. With Nakheel it was hit or miss. Some hit the jackpot and some were stung badly. With Galadari it was all miss, i.e. your money went missing and you can't get it back!