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Dubai property demand set to pick up further

Dubai - The market is improving and property prices are on the rise with a good number of high net worth foreign investors from India, Russia and other countries are flocking to Dubai to buy real estate assets at a very attractive price.

Demand for residential property in Dubai will pick up further in the coming years as foreign investors are snapping up unsold units amidst a steady recovery in prices, says founder and chairman of Danube Group.

"As a result of strong demand, the market is improving and property prices are on the rise with a good number of high net worth foreign investors from India, Russia and other countries are flocking to Dubai to buy real estate assets at a very attractive price," said Rizwan Sajan.

In order to cash on improving market sentiment, Danube Properties, a real estate development arm of Danube Group, plans to launch its first project since the outbreak of the Covid-19 pandemic in the UAE in the next couple of months.

“We plan to launch a project very soon in Arjan. I feel the real estate market has picked up as investors from all over the world are pumping in money here. All neighbouring countries are still trying to get coronavirus vaccine whereas the UAE is functioning as a normal country. Therefore, the confidence in the UAE is very high and a lot of people are buying second homes. I believe this sentiment will continue over the next couple of years,” Sajan told Khaleej Times during an interview.

Real estate consultancy Asteco said at its second-quarter report that property prices across the UAE continued to recover with some segments seeing double-digit growth in sale prices.

Danube chairman disclosed that the company has been consistently performing better year on year, even during the Covid-19 pandemic.

“Our results for 2021 look much better than 2020. Even 2020 was better than 2019 despite a four-month lockdown. We kept the staff motivated, ensured that we keep proper stock and work hand-in-hand with suppliers during the pandemic. When the situation normalised and businesses improved, payments from clients also improved.

“We helped clients with deferred payment. If their cheques bounced, we did not take them to the court. We held them and let them pay as per their ability. It strained our cash flow but it was the least that we could do. It was an unprecedented crisis and we needed to hold hands with our suppliers, customers and all stakeholders. At the end of the day, we are human beings and it is the time to be compassionate,” said Sajan.

Established in 1993 in Dubai, Danube was launched as a building material supplier company but later expanded into other business verticals such as real estate development and home interiors and decorations.

Danube founder started his career in Kuwait but he returned to India after the Iraq-Kuwait war in 1990-91.

“Since I had some good experience in managing building materials business in the Gulf, I thought of going back to the Gulf and start a new career. So, I came to Dubai to try out my luck. I got a job in the same sector and soon developed good contacts with the contractors. But I soon realised that in order to grow, I need to develop my own business. So I started Danube Building Materials in 1993. Initially, I used to source goods and supply to contractors with a margin. We then started to open shops and warehouses as the business grew to support our clients. This is how the business grew. The rest is history,” Sajan said.

Sharing his life experience, he said: “In the last 28 years, I have seen three ups and downs. But whenever there is a crisis, Dubai has emerged stronger because its fundamentals are very strong. Similarly, Danube’s also emerged stronger – whether it’s the Kuwait-Iraq war, 2009 financial crisis or the ongoing Covid-19 pandemic crisis. Because the lessons I had learnt in my childhood and my early career taught me certain things that help me even today – be honest, hard-working, be ethical and straightforward in your dealings. Don’t make a promise that you can’t keep. These simple but powerful values helped me develop Danube Group into a successful business.”

He revealed that the construction material business is under pressure because not many new projects have been launched in Dubai. “However, a number of developers are going to launch new projects that will change the dynamics and help the sector grow.”

He noted that home improvement and interiors sections are growing even during the pandemic for people are now investing in home improvement due to work from home and upgrading their furniture etc.

— waheedabbas@khaleejtimes.com