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High Demand Will Absorb Supply, Says Danube Properties’ Chief
Despite numerous new launches, the Dubai property market is expected to remain stable over the next four to five years. Rizwan Sajan, founder and chairman of Danube Properties, predicts that high demand will keep oversupply at bay, even as new properties enter the market.
High Demand to Absorb Incoming Supply
Rizwan Sajan explained that while a large amount of supply will come to the market, demand will keep pace. “Many investors are looking to make Dubai their second home,” he stated. As people move to Dubai, the city will need more properties to accommodate residents and tourists.
Sajan highlighted the expected impact of the upcoming gaming resort in Ras Al Khaimah. He believes the number of tourists visiting Dubai will increase significantly once it opens in the next few years. “The opening of the gaming resort will likely double the number of tourists,” Sajan said.
Short-Term Rentals to Rise with Tourist Influx
The influx of tourists is expected to boost the demand for short-term rental properties. Many owners are expected to list their properties on platforms like Airbnb to meet this rising demand. “Dubai will benefit from this surge in tourism, especially as Ras Al Khaimah doesn’t have enough properties to accommodate the influx,” Sajan added.
Although Ras Al Khaimah will attract visitors to its gaming facilities, many tourists will likely choose to stay in Dubai, further fueling the need for rental properties.
Rapid Growth in Dubai’s Real Estate Projects
Dubai has seen an unprecedented surge in real estate developments, especially in 2023-2024. Local and foreign developers have launched several mega projects, adding thousands of new units. According to Cavendish Maxwell’s Property Monitor, developers averaged more than one project launch daily in the first quarter 2024. In March 2024 alone, 30 off-plan projects were launched, adding 10,000 new units to the market.
Despite this rapid growth, Sajan remains optimistic about the balance between supply and demand. “There’s no oversupply because the demand from investors is still high,” he said.
Property Prices Remain Competitive
While property prices in Dubai have surged over the last few years, they remain competitive compared to major cities worldwide. Sajan pointed out that Dubai’s real estate is still affordable for investors. “Property prices in Dubai are much cheaper than in cities like Hong Kong, New York, and London,” he said. According to Savills Research, Dubai’s average price per square foot is $800, significantly lower than other major global cities.
Developers Face Challenges Amid Rapid Growth
As construction continues rapidly, developers face challenges in keeping up with demand. Sajan highlighted smaller developers’ difficulties, especially in selling their units quickly. “Larger developers like Danube have an advantage because of our reputation and resources,” he explained. Smaller developers often take longer to complete sales when selling properties.
Another challenge developers face is finding reliable contractors. Sajan noted that Danube Properties, a significant player in the market, doesn’t face this issue. “We have the advantage of being able to work with the best contractors, and one of our subsidiaries supplies building materials, ensuring timely project completion,” he said.
Danube’s Landmark Projects in Dubai
Danube Properties has launched numerous projects in Dubai valued at over Dh26 billion. Two recent developments, Bayz102 in Business Bay and Oasiz in Dubai Silicon Oasis stand out for their ambitious design and luxury features.
Bayz102, the tallest building in Danube’s portfolio, is set to become a landmark in Dubai’s skyline. This 102-level tower will feature a helipad designed for air taxis, signaling the future of urban transportation in Dubai. “Bayz102 represents a new era in luxury living and urban mobility,” Sajan said.
In addition to its cutting-edge transportation features, Bayz102 will include retail outlets and over 40 amenities to enhance its residents’ lifestyles. “We are proud to offer residents the convenience of cutting-edge mobility right at their doorstep,” Sajan added.
Future Projects on the Horizon
Danube Properties is exploring new plots in prime locations to launch more projects in the coming months. As the demand for properties in Dubai continues to grow, Sajan remains confident that the market will remain robust and competitive.
With the introduction of innovative projects like Bayz102 and the anticipated rise in tourism, Dubai’s real estate market is expected to thrive over the next several years. Investors and property owners alike will benefit from this continued growth, ensuring that Dubai remains a top destination for both residents and visitors.
