Danube’s Dh500m Dreamz sold out Gulf Property Dubai, UAE:- Investors snapped up 171 modern contemporary styled villas of the Dh500 million Dreamz by Danube, within three hours at the sales launch event in a single day last month, the company said in a statement. This happened within two week’s of Danube Group’s much expected foray in to the real estate market. The sell-out of the Dh500 million residential project is an instant endorsement by investors and real estate buyers who could make substantial gains from growing premium level. All of the 171 townhouses within Dreamz by Danube project has been sold out at the end of the project’s day-long sales campaign held at the Oberoi Dubai Hotel – marking a new era in the emirate’s real estate sector. The sales meet saw more than 2,000 registered buyers and investors queue up to lay their hands on the ‘prized possessions’ – townhouses that was offered on first-come-first-serve basis. Equipped with tight security and good crowd management measures, the event saw a disciplined sale process. This is the first full project sell-out on a single-day sales campaign in nearly six years, since September 2008 – the month the region’s real estate market fell victim to the global financial crisis. “This is a great moment not only for Danube Properties, but also for the entire real estate fraternity of the UAE and reflects strong investor and end-user confidence,” Rizwan Sajan, Chairman of Danube Group and Danube Properties, said. “This is also a testimony that if you have the right product, right location, right pricing and the right developer brand behind the project, then the there won’t be shortage of buyers.” The announcement comes within less than two weeks after Danube Group launched its real estate subsidiary, Danube Properties. The launch price of Dh2.5 million for a 2,500 square feet townhouse reflects an attractive price point for just around Dh1,000 per square feet that instantly offers great prospect for a sizeable premium for resale at the greater Al Furjan neighbourhood. The near stampede sell-out event took place despite a slowdown Dubai’s residential sales market to more moderate growth levels in the first quarter of 2014 following a spike in prices, after the Expo 2020 announcement at the end of 2013. “Apartment and villa price sales prices stabilised at 3 per cent and 6 per cent growth respectively,” said the latest Dubai report for Q1 2014 by leading regional real estate services firm Asteco. Villa sales price gains were led by moderately priced developments such as Al Furjan and Jumeirah Village, recording 22 per cent and 15 per cent in the first quarter growth respectively, with prices per square foot ranging from Dh1,000 to Dh1,200 and Dh850 to Dh1,100, it said. However, despite a 17 per cent increase in prices in 2013, Dubai’s prime luxury property market continues to remain affordable in comparison to key global cities, Knight Frank’s Wealth Report 2014 revealed earlier this year. In terms of price growth tracked by Knight Frank, Dubai was placed seventh among the list of 10 global cities surveyed. Abu Dhabi took the eighth slot on the list. The UK-based real estate consultancy states that in Dubai one can buy 146 square metres of prime property for US$1 million (Dh3.67 million) compared to only 15 square metres in Monaco, 20.6 square metres in Hong Kong, 32.6 square metres in Singapore and 25.2 square metres in London. For US$1 million, one can buy 41.2 square metres in Sydney, 41.7 square metres in Paris, 43 square metres in Moscow, 46.2 square metres in Shanghai and 95.7 square metres in Mumbai.? ?Among the 20 cities surveyed, Dubai is placed 19th on the list with Cape Town taking the last slot; US$1 million can buy 215.1 square metres there. Knight Frank pointed out that average property prices in Dubai were still below the pre-crisis highs, indicating there were no fears of bubble emerging. Size of the 3 and 4-bedroom townhouses will have built-up area beween 2,500 and 3,000 square feet while each townhouse will come with a garden that will accompany water features. The modern luxury townhouses come with contemporary design, latest finishing from the country’s best building materials and interior supplier that guarantee quality finishing. Both real estate buyers and investors were prompt in snapping up the townhouses. “Our overall product offering creates a great opportunity for both end-users and investors who could reap good dividends within a few months as we prepare to construct the project,” Sajan said. Danube Group, the largest building materials and home furnishing supplier in the Gulf, earlier this month announced its foray into the real estate market with a Dh500 million project – Dreamz – a lush, green and well-landscaped neighbourhood of 171 luxury townhouses within Al Furjan community. “This is our first project and the sell-out of all of the 171 townhouses reflect investor confidence in Danube Properties as well as the real estate market in Dubai. This end-user and investor endorsement will encourage us to carry out our construction works and deliver the project timely to our valued customers by 2016 and also launch more such projects in the coming years,” Sajan said. Danube Group, which last month celebrated its 20th anniversary of founding by visionary non-resident Indian businessman Rizwan Sajan, has more than 25,000 types of building materials and home furnishing products under one roof. With an overwhelming response in such a short period of time for their first step in the real estate market, Danube Properties plans to continue to create a stronger market presence not only in the Middle East but also across the global market. Along with the bigger names in the reality market, Danube Properties has some great projects lined up for the investors in the region. “[The year] 2014 is a landmark year for us with the celebration of our 20th anniversary and the launch of our latest project, Dreamz by Danube,” Sajan says. “This expansion has not only strengthened our market presence in the region, but has also helped us reach a wider audience. The great success of today’s sale allows us to expect higher sales for the end of the year. Danube, as a company remains steadfast in meeting the requirements of growing customers and stake holders and will continue to live up to our reputation of being providers of world-class materials,” he added. Earlier, Danube Properties declared legendary Indian cricketer and Interim BCCI President Sunil Gavaskar as its brand ambassador. The company also took the opportunity to unveil its multi-million dirhams-worth residential project ‘Dreams by Danube’, which Gavaskar inaugurated at the event. The company also simultaneously launched a massive marketing and advertisement campaign across the UAE where the project’s billboard had overshadowed most other campaigns. The venture into Dubai’s booming realty market, in the form of establishing Danube Properties is the brainchild of Rizwan Sajan, Chairman of the group; who after thorough research and careful planning with his team, combined with his personal entrepreneurial acumen, decided to take this step in the right direction. Sajan said, “We are proud of Danube’s progress over the last 20 years and it is heart-warming to see the brand celebrate yet another milestone. Dubai is looking very positive because of Expo 2020, it is a small country and people from all parts of the world want to invest in this country. The market is going at a very stable way, there are not much of leaks happening in the market and investors are coming back as well.” Danube, known for its quality of construction material, equipment and home interior supplies, plans to successfully use its prestige and status as an industry leader to launch its first residential project. ‘Dreams by Danube’ will provide affordable yet superior-quality homes, and the company is particularly trying to attract the mid-income section to be its clients. “Till now we were focussing on expanding our reach and presence in GCC and the MENA regions by providing ample range of building materials and home products. From this year, we will also focus on our vertical integration, from our current business. Danube Properties, a mid-tier residential venture, will be tasked with spearheading corporate innovation and growth, with a clear responsibility to oversee urban and infrastructure planning,” Sajan said. He also added, “The selection of a contractor is in a tendering stage, finalising a contractor for the project is a fairly easy job, the only reason being that we are dealing with all the contractors on a daily basis and we are aware of the capabilities of most of them.” ‘Dreams by Danube’ is a premium residential project being constructed in Al Furjan area of Dubai. Expected to be completed by the end of 2016, the project will comprise 171 attractive villas, and has received a whopping investment of Dhs500 million from the company, completely self-financed. The project is conveniently located at a distance of 10 minutes from the Ibn Battuta mall and also near to the Expo 2020 site. The community is expected to house Dubai’s growing urban populace, who would be drawn to the project due to the fact that the area consists of excellent infrastructure and transportation facilities that include elegant roads and well-connected metro services. The homes, beginning from a reasonable price of Dh2.5 million, will be a blend of contemporary country housing architecture and modern innovative designs. The villas will be offered in the two, three and four bedroom categories and will showcase elegance and finesse with Italian marbles, modular kitchen, luxurious bathrooms with classic sanitary ware and Jacuzzis; all from Danube’s acclaimed array of products. Living in the upcoming community will be ideal for those seeking peace, comfort and a healthy lifestyle amidst Dubai’s metropolitan hustle and bustle. Speaking highly of Danube’s new venture and project, Gavaskar said, “I have been associated with Danube in the past. It gives me immense happiness and pleasure to join hands with them all over again, in a new direction.” Danube Properties’ investment comes at a time when Dubai’s real estate market is galloping with its growth and the atmosphere is conducive for builders to pool in their money. The dark days of the financial crisis of 2008 are now over and the property market has bounced back fantastically; so much so that residential property prices leapt by as much as 35 per cent and demand by about 30 per cent last year, according to an independent estimate. The positive trend, market analysts and financial research houses believe, is only going to continue in the future, with banks and NBFCs doling out more loans to builders for their projects. Authorities and realtors have also learnt a hard lesson from the recession, and experts believe the government and central bank are adequately regulating the property market and safeguarding it from unwanted bubbles. “Currently we are concentrating on the UAE market; there is stability and confidence in the market. It is not growing crazy; there is a lot of positiveness from the investors. I think this is the right time to enter the market,” said Sajan. With the entry of Danube Properties as a strong player in the market, the healthy competition will not only intensify, but will also go a long way in reducing monopoly of the bigger fishes like Emaar and Nakheel and boost fair pricing and quality service. Dubai’s urban landscape is mushrooming with residential projects, which are fast getting purchased by customers. In the light of this market scenario, ‘Dreams by Danube’ will most certainly be a strategic project, and in turn help the company pursue its other plans. “People who come from abroad always look to invest in properties in Dubai, and when luxury is combined with affordability, investors would definitely look forward to it. There is a huge market for everybody. As long as we are delivering the right property at the right price, we should be assured of the money flowing in,” Sajan mentioned. With the launch, the company is also going to start a massive marketing and brand-building campaign that will help attract investors and buyers. The company is however firm in remaining committed to its core business of being a premier and famed building materials supplier and has industrious expansion plans. The company maintains a prominent presence in the GCC and India and has established strong footholds in China and Canada; Danube Properties will only help the company grow leaps and bounds. “With Danube Properties, a thorough market study and understanding of the group’s strengths along with the current opportunities in the market were behind the new strategy. We are confident that this strategy and their respect and position in the market will give Danube the flexibility to take advantage of the market opportunities, while maintaining its focus on being a leading provider of building materials and home interior products across the region. If this project turns out to be successful, we will definitely look for other projects and will decide on this once we have completed the scheduled delivery,” Sajan stated. Established in 1993, Danube Building Materials FZCO provides more than 25,000 products in stock and in-house value added services in all of its multiple set of showrooms across the Middle East region and India. The company operates from its head offices in JAFZA with logistics facilities across the region which amounts to 5 million sq. feet and includes kiln drying facility, factory and warehouses of the group. From a small trading firm, Danube has grown into one of the largest building materials company in the region, with its diversified branches worldwide including UAE, Oman, Bahrain, Saudi Arabia, Qatar and India, in addition to procurement offices in China and Canada. Danube has a team of 1,600 plus people working across strategic locations across the GCC and India.
Posted on: Sat, 24 Jan 2015 09:38:22 +0000
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