By Gavin Gibbon
Dubai-based developer looking to complete 2,800 units by the end of Q2
The founder and chairman of Dubai-based Danube Properties, Rizwan Sajan, has dismissed suggestions that his latest development, which is set to bring 741 residential units to the market, will further fuel fears of oversupply in the emirate’s real estate market.
Olivz is the latest project announced by the affordable housing developer, made up of a mixture of studio, one bed and two-bedroom apartments.
At a press conference on Wednesday, Atif Rahman, director and partner at Danube Properties revealed that “by Q2 of 2020 we would have delivered every inch of the projects that Danube Properties has launched to date. Every project excluding the one we launch today (Olivz)”.
According to the Danube project development factsheet, there are over 2,800 units currently under construction, including Miraclz Tower (599 units), Bayz (463 units), Jewelz (463 units), Lawnz (1,064) and Elz (275 units)
That is on top of over 1,700 units already delivered.
However, Rizwan Sajan told Arabian Business: “For the segment of the market we are targeting, still there is a huge scope. I’m not saying there are too many in the market, there are plenty in the market, but how many are with the quality, with the amenities we offer at this price?
“There’s nobody in that particular segment that we are into at a price of AED290,000 [for a studio apartment] with all the facilities, there is nobody in the market.
“Even if there is too many, we are one of the different ones and with the payment plan I find there’s a huge demand.”
According to the annual market update from Dubai-based real estate outfit Core, over 32,000 units were brought to market in 2019 – the highest number of residential handovers in the last decade - taking the total residential stock in the emirate to 550,000 units.
While Core has “conservatively estimated” that over 49,000 units will be delivered in 2020, with a particular focus on MBR City, Dubailand and Dubai South.
In December Damac Properties founder and chairman Hussain Sajwani called for new construction to be stopped to address oversupply issues.
Dubai’s Higher Committee of Real Estate, which is chaired by Dubai Deputy Ruler Sheikh Maktoum Mohammed bin Rashid Al Maktoum, and includes senior representatives of major property developers among its members, was set up in September last year to monitor and regulate oversupply in the emirate.
Sajan said he is in regular contact with the committee which, he said, has given its blessing to his company’s latest development.
“They also believe that there are a few private developers and a few master developers they can trust and they are very happy with us,” he said.
“We go to them with any problems we have and they are willing to assist us and give us their full support because they see that we are not only launching the project, but delivering on time, making sure our customers are happy. That’s what they want.”
He revealed that, once the latest Olivz project has sold more than 90 percent, he will look to announcing a further development.
“We are here to stay and people who are going to stay, why should they stay in a rented apartment? They should always think of having their own apartment. This is for all the people who are staying in a rented apartment to convert into having their own apartment so they don’t have to pay the rents forever,” he added.