Dubai: The Dubai developer Danube Properties has launched its first offplan project in 18 months, a Dh475 million high-rise at the Arjan community and next to Miracle Gardens. The developer has kept prices below Dh1 million for the units and sticking with the 1 per cent a month payment plan. Sales will start October 30.
The ‘Skyz’ project comes just as developers in Dubai are slowly getting back into launch mode again. Saudi Arabia’s Dar Al Arkan launched a luxury tower (in alliance with Missoni), while Damac had one with the Cavalli branding. There were also launches from Samana and Nshama, among others.
For Danube, the latest project too plays to its strengths, “which is to convert tenants in Dubai to think of buying their own homes,” said Rizwan Sajan, Chairman and Managing Director of Danube Group.
There are three formats available, with studios from Dh400,000, one-bedrooms at Dh600,000 and over, and two-beds from Dh800,000 plus. “The intention was to keep the prices below Dh1 million compared to what’s available in the immediate neighbourhood,” said Sajan. “And then offer more features into the units and project – at the price of something that you get at Discovery Gardens.”
For a studio at Skyz, the base cost works out to a 10 per cent down payment and Dh16,000 for registration fees and such, while for a one-bedroom, it is 10 per cent plus Dh24,000. The rest will be paid at 1 per cent monthly. Skyz is aiming for a 2024 completion. (It is near the Miraclz high-rise that the developer completed recently.)
Keep prices in check
Projects costs have shot up for developers brought on by sharp increases in nearly all of the building materials. “For us, the increases have been in the 20-25 per cent range, but I will say these are still manageable,” he added. “Plus, for 60-65 per cent of the material requirements, we source in-house and that too helps manage costs.”
Use time ‘constructively’
While it desisted from new launches in these 18 months, Danube focussed on the existing projects and their completion. “We handed over a few and will also finish with the Dh500 million Lawnz next month,” the Chairman added. “My focus was on clearing off the inventory in these 18 months – there will always be something left to sell. That’s what we did and now we start on a clean slate.”
There are a couple of plots that Danube has, where it will look to launch next year. As for more land buys, “There are always plots available in JVs with other developers, who may not have the expertise to build and sell,” said Sajan. “That’s what we bring in – buying land will not be a challenge in Dubai, at least for the next two years.”
Danube will stick to projects within the city limits, with a particular preference for Al Furjan, Arjan and Wursan. “Anything that’s close to Emirates Living – say, a 10-minute drive – should work well,” said Sajan.