Dubai: Rizwan Sajan of Danube is finally developing a taste for high-rise projects and a high-profile location. After a series of mid-rise property launches with a combined value of Dh2 billion, the developer has launched sales of it ground plus 29-storey Bayz tower in Business Bay. The project cost is Dh450 million and units start at Dh1,250 a square foot.
Even with the high-rise, Sajan, Group Chairman, is going straight for the price-conscious buyer — “At the Dh1,250 a square foot mark, Bayz would be the most competitively priced in its class at Business Bay. The prevailing range there is from Dh1,400 a square foot.
“I have never said Danube will never build a high-rise … there were earlier opportunities to come up with products below the market average and win over buyers. It so happened these were all mid-rise and one villa development. But now Danube is in a position to offer the same price benefits within a high-rise structure.”
Returns in low double-digits
Danube had acquired the plot recently. Of the overall projected cost of Dh450 million, land acquisition cost ran up a bill of Dh80 million. (Business Bay plot values are in the range of Dh200 a square foot and over.) Studios at Bayz start from Dh650,000. The payment is split equally, with 25 per cent to be paid post-handover. “Even with a higher upfront, we are still confident investors will get returns in low double-digits,” said Sajan. “That’s because the current rental range for a studio in Business Bay would be around Dh75,000 a year, and which allows buyers to easily meet their final instalments.”
The construction schedule is kept at a tight 30 months, another factor that is a major factor with investor-owners.
Top spot
With infrastructure works well in place and activity-fuelled F&B and retail elements in place, Business Bay has become a top spot for residential tenants who want to live off Shaikh Zayed Road but not willing to shell out the slight premium that similar apartments in Dubai Marina take in. The office property buildings are already abuzz with improving occupancy levels. In its latest update, Core Savills, the consultancy says, that Business Bay office addresses have seen occupancy gains to 63 per cent against 55 per cent a year ago.
On whether the Business Bay high-rise is a one-off, Sajan said: “Anywhere we stand a good chance of selling inventory is a good enough place to invest, be it any height.”
