Investor confidence in the UAE market has risen tremendously, says Rizwan Sajan

Oversupply in Dubai is a thing of the past, and developers should not worry about it because demand is strong and there are no new mega launches that could cause a glut again, says Rizwan Sajan, founder and chairman of Danube Group.

Demand From Around the World

"There is no oversupply in the market because if that were the case, then we would not be selling our Skyz project successfully. Even other developers who have launched their projects can also sell them well. It's because investor confidence in the UAE market has gone up tremendously, both from local and overseas investors. That's why whatever the supply is coming into the market has been successfully sold," Sajan told Khaleej Times on the first day of Cityscape.

Danube recently launched the Dh475 million Skyz project in Arjan and has already sold more than 50% of it. Sajan expects to reach around 70% by the end of the month and 100% by year-end, after which the developer will launch its next project in the first quarter of 2022.

"For the next few years, any developer should not worry about selling the project because demand is coming in from all over the world. I don't think we should have any problem as far as selling is concerned. I don't think oversupply will happen because a lot of people from abroad are investing here. Developers are not launching big projects but one or two buildings and that'll not cause oversupply," he said.

Prices on the Rise

Dubai property prices have been recovering steadily and are expected to rise by 20% over two years, offering annual returns of 5–10%. In the past six months, prices have risen by 20–30% in some areas.

"Buyers of the properties can expect to benefit from a 20 per cent premium if they sell the property after two years when we will hand over Skyz to the buyers. This translates to a straight 15 per cent annual profit – making it a very high return on investment," he said, adding that those who hesitate might miss the boat.

"Think of those who bought properties last year when the prices and market sentiment were the lowest in the middle of the pandemic – and made a killing by selling them at 30-40 per cent premium earlier this year – a solid return in just six months," Sajan added.