AED 5.13 billion “Danube Group” turnover in 2015 with the expectation of 15- 20% growth in 2016

Rizwan Sajan the Founder & Chairman, of “Danube Group”: 2015 was the year of “affordable housing and convenient payment plans”  and it will continue in 2016.

• The current economic environment provides the best opportunity for Real Estate Investments in Dubai.
• AED 5.13 billion “Danube Group” turnover in 2015 with the expectation of  15- 20% growth in 2016.
• We intend to launch 3 to 4 real estate projects annually.
• We are planning to open six new retailer in the region, with investments exceeding AED 200 million, which will increase our stores to 50 stores.

Dubai-8 May 2016- United Arab Emirates: Rizwan Sajan the Founder & Chairman of Danube Group, the group that recorded  5.13 billion dirhams in turnover  in 2015  and expected 15 to 20%  growth in 2016, has called  for investors to buy  properties  in Dubai, pointing out that the current economic environment provides the best opportunity for properties  investment. 

According to Mr Sajan their release of a number of low-cost real estate projects (affordable housing) bridges the gap which has existed in Dubai market for years , where the majority of  developers concentrated on luxury properties with high prices, and where  developers has targeted  buyers with financial capabilities for years added Mr Sajan, who called 2015 the year of ' Low cost housing and convenient payment  for buyers in real estate , Mr Sajan expected such trend to continue in 2016. 

On the other hand Mr Sajan revealed that 'Danube properties” the property arm of 'Danube' group will be launching 3 to 4 low cost real estate projects annually.

On the retail side Mr Sajan revealed that 'Danube' group will be opening six new retail stores in the region, with investments exceeding AED 200 million, which will boost its stores chain to 50 stores.

Question- How do you evaluate the performance of Dubai properties market at the moment, do you expect an increase in properties prices Rent/ sales in 2016? And do you still see Dubai Property market as a profitable market for investors?

ANSWER- Without a doubt, 2015 was the year of ‘affordable housing’ and ‘convenient payment plans’. We were one of the first private developers to offer affordable housing combined with the special payment plan of 1% per month. All our projects- Dreamz, Glitz Residence 1, Glitz Residence 2, Glitz Residence 3 and latest offering Starz Tower By Danube come with very unique innovative concepts in their own right and we have the most stand out payment plan for long- term investors and end- users, wherein the buyer just pays 10% down payment followed by 15% in 60 days, the balance amount is to be paid in 75 equal monthly installments of only 1% each without interest. The most attractive part of the payment plan is that it requires the buyers to pay only 52% until handover and balance in 4 years after handover.

We started the properties division with clear focus on affordable housing segment. We identified the gap that existed in the market which was too focused on luxury and super-luxury segments while the mid-income population was left untouched. They form a very high percentage of the local population and majority of this population having stayed in this beautiful country for long consider Dubai their home. They were waiting for the right opportunity to invest in real estate.
We believe that if a project is offered at right price, at right payment terms and at right location, there’ll always be buyers in the market. 

Question- Given the decline in global economic growth will it reflect performance of the real estate sector in Dubai and whether this sector has become more fortified compared to 2007/ 2008 when was affected by the repercussions of the global financial crisis?

ANSWER- With Dubai’s property prices remaining lower compared to global hub cities such as London, Mumbai, Singapore and Hong Kong, the new low-price environment offers a great opportunity for consumers to benefit from not only the asset but the price appreciation of the asset when delivered.

The current economic environment offers perhaps the best opportunity for home buyers as well as investors. First, the home buyers will be able to save them from the increased high rent in Dubai that will affect their savings. Besides, the apartment will command higher value and rent - in case the home-owner wants to sell or rent out. Either way, there is guaranteed higher return.

Question- How do you evaluate performance of Danube Group in the first quarter of 2016 compare to the same period in 2015 in terms of ( growth; profits….etc.)?

ANSWER- In 2014, our turnover was AED 2.8 billion whereas in 2015 it was AED 5.13 billion. Moreover, in 2016, we expect to grow at another 15-20%. 

Question- Danube Group main target by the end of 2016, and your plans to achieve such target? Could you share with us your expansion plans in the GCC region in 2016 (Showrooms, offices, stores.etc.)

ANSWER- In past decade, Danube Building Materials FZCO has grown into Danube Group with subsidiaries- Danube Building Materials, Danube Home, Danube Properties, Milano, DanubeDirect.com, Cha Cha Chai, Danube Systems, XTI, Tudors, Alucopanel Middle East LLC.
In 2016, we plan to open 6 more retail stores in the region with an investment of over AED 200 million and we will have a total of 50 Danube stores.

Our last project, Starz Tower by Danube is 100% sold out and in May we are launching another project and given the popularity of our projects we will continue launching 3-4 projects in a year.

Question- The performance of Danube Properties arm, the number of projects you launched since the creation of Danube Properties arm(the construction stages of all your  projects; your expectation for the handover of such projects; projects still under construction expected handover; all units in these projects has been sold?

ANSWER- Dreamz by Danube- The AED500 million development in Al Furjan houses 171 contemporary styled townhouses. Glitz 1 & 2 by Danube- Offering 302 luxury apartment units ranging from studios to three bedrooms, the $81.6m (AED300 million) project is being developed at Dubai Studio City. Glitz Residence 3 by Danube - The AED350 million ($95.3m) Glitz Residence 3 development will consist of 352 apartments, offering studios, one-, two-, and three-bedroom units. The project is slated for completion by the end of 2017. Starz Tower by Danube- Danube Properties recently renamed the Dh300 million Ritz Tower, a residential project in Al Furjan, to Starz Tower after the name clashed with another registered trademark. However within weeks of the sales launch, all 454 units of the project were sold out. 

The unwavering customer trust in the brand for over two decades has established Danube’s projects as the preferred choice across geographies. Danube’s first project Dreamz is well on schedule for delivery later this year whereas other projects- Glitz 1, Glitz 2, Glitz 3 and Starz are all 4-5 months ahead of schedule. 

Question- Do you have plans to launch new properties projects soon, and will it be again they again affordable homes (could you kindly provide us with information such as location, cost of the project, launching, etc.)?

ANSWER- We cater to affordable housing section which is a sizeable market and we believed was left untouched. There is a huge population of expats in Dubai who have lived here for a decade or more and call Dubai their home but have not been able to own a property. We wanted to create opportunity for them to own their dream home in Dubai through our unique payment plan. 

It depends on the type of property you choose to buy, a Studio apartment will cost you a monthly installment of anything between AED 4,100 to AED 5000 per month, while the EMI for One Bedroom apartment is approximately AED 8,000 and for Two Bedroom apartment is in the range of AED 11,000. We also have option for Two Bedroom + Study and Three Bedroom apartments for which the monthly installments are approximately AED 12,000 and AED 14,000 respectively. The biggest advantage of our unique payment plan is that you only pay 52% until handover and the remainder 48% is paid in 48 months spreads over 4 years post-handover.

Our offering of relaxed payment plan has also coincided with the government’s initiative of affordable home.

Question- You were the first to introduce affordable homes, how challenging is that for other developers (building high cost properties)?

ANSWER- While the market sentiments are down, Danube has been busy carving its own niche in the affordable housing segment. The company has been able to negate any chances of delay in projects because of the one important factor; their core business division of building materials, which allows the selected contractor to source building material on time and more importantly, it comes at the lowest available price. Such an arrangement makes sure that the project cost comes down considerably, which allows Danube to pass on the benefits to customers by delivering property at the most affordable price.

Question- How do you evaluate building material prices at the moment in light of huge fall in oil prices, and the impact of such prices on properties prices in UAE?

ANSWER- Markets always goes up and down, according to various factors in the region, oil prices and sentiment in the market, but what I see is a simple supply and demand situation hence it will not have any bearing on the number of developments likely to be launched across the GCC in 2016.

Question- China is an important market for your building material imports, the impact of the decline in the value of the yuan on your imports?

ANSWER- Chinese goods will become a little cheaper for UAE consumers after the People’s Bank of China devalued the yuan by the largest single-day percentage in two decades. The fall in the yuan could, in principle, provide a boost to UAE imports of now cheaper Chinese goods. But the economic impact of the yuan’s devaluation on the UAE depends on how the devaluation affects commodity prices - including oil prices - and regional economic growth.