Rizwan Sajan, founder and chairman of Danube Group, is famous as the "1 per cent man" of Dubai, and he is now reaching new heights with his company's latest tower project.
Going from the slums of Mumbai to the heights of Dubai is a rags-to-riches story that belongs to Rizwan Sajan. His business began with building materials, moved into home retail, and today the UAE skyline is dotted with his company's residential towers. Some Dubai residents even call him the emirate's own "rocket man", as his charismatic approach to marketing has made him a household name.
A Strong Believer in Marketing
"I have been a strong believer in marketing. Starting from the early days of Danube Group, we've been using various marketing strategies to create an impact. Even with limited funds in the 1990s, we successfully marketed our brand. What we did was very interesting – we utilised small trucks and branded their tyres. It was visible and strong. It also gained popularity very quickly, making Danube Building Materials visible everywhere," Sajan tells Gulf Business.
"Marketing is the most effective way to boost brand visibility and sales, especially in Dubai. Nowadays, social media stands out as the best owned marketing tool. Currently, we're putting in our best foot forward to promote Danube Properties and we've been trying multiple mediums and platforms. You name it, we've done it. Danube Properties is reaching new heights, quite literally, every day," he says.
From Disruptor to Bayz 101
Sajan has gone from disrupting Dubai's real estate market in 2014 to launching what will be one of Business Bay's most iconic towers, Bayz 101. Scheduled for completion in 2028, the 101-level residential tower will be just a two-minute walk from Business Bay Metro Station and promises spectacular views of the Burj Khalifa. Buyers can, of course, purchase through Danube's 1% plan: a 20% down payment on booking, then the remaining 80% in monthly instalments of 1%.
A visit to Danube's office on Sheikh Zayed Road shows how popular the plan is. The office is packed with buyers, a constant hive of activity around a gleaming model of Bayz 101 at the entrance, with customers signing up for homes in projects such as Dreamz, Jewelz and Wavez. The company has 13 completed projects and another 15 in its pipeline.
The Strategy Behind the Growth
"We have grown very fast as we have championed the affordable luxury properties for the last ten years and have managed to convert thousands of tenants to homeowners, who now enjoy living in the comfort of their own homes," Sajan says. He sets out three pillars:
"To maintain our leadership in the affordable luxury segment, we have followed a strategy. First, we have launched one project at a time. Unless the project was sold out, we did not launch the next project. We have maintained this for the last ten years of our existence. This way, we managed the project development cycle – from project launch, sell-out, and contracting before moving on to the next project.
"Second, we have been a delivery-focused developer. Delivery is key to gaining buyer trust and the real estate business is about trust. Buyers put their life savings in a dream home. You can't play around with it. We need to deliver it on time, so that the buyer can move in on time and save his rent to pay instalments.
"Third, we offer luxury properties – but at an affordable price. So, we don't compromise on quality. In fact, we have been exceeding customer expectations – better amenities and facilities than what we had promised to customers."
Surging Real Estate Growth
Dubai's property market has been booming since the end of the Covid-19 pandemic. "In 2023, we also witnessed rents skyrocketing and it will continue to do so in 2024. The Dubai real estate market will continue to grow in the next 2 years by at least 20-25% and this will inspire further confidence among property buyers," Sajan says.
Another boost has been the UAE's decision to make the Golden Visa easier to obtain through property. The country plans to scrap the Dhs1m down payment previously required for the 10-year visa, so residents will soon qualify if the property they buy is worth more than Dhs2m. Sajan sees this as part of the UAE's transition from a market where expats stay only a few years to one of long-term residency.
"We expect the Dubai real estate market will see sustained growth over the next five years as it has matured and is no longer a transitional market. Also, the emirate's population will continue to increase in the coming years as new job opportunities will be created as well as more high-net-worth individuals will flock to the emirate to cash in on higher capital and rental returns. In addition, the government's pro-business and pro-investor policies will continue to attract fresh capital into the real estate sector," he says.
A Changing Buyer Mix
Sajan and his team have seen many changes over the years, including in the make-up of buyers and tenants. Danube Properties has served more than 112 nationalities, and he says the company remains committed to the highest level of service for clients from around the world.
"Due to evolving geopolitical dynamics, Dubai has experienced a significant influx of individuals relocating from various global regions. Notably, in 2023; Indians, Russians, and British investors have emerged as the primary contributors to Dubai's real estate market. Additionally, neighbouring countries such as Egypt, Lebanon, and Turkey are increasingly becoming assertive players in the Dubai property landscape, signifying a broader spectrum of international interest in the city's real estate sector," says Sajan.
He highlights one nationality in particular: "We, at Danube Properties, have seen a surge of interest and investments, especially from Russians in 2023. In the last 12 months, they have accounted for 22 per cent of our buyers. Dubai has built a strong reputation for stability, security, and luxury, and it has become a beacon of hope for those seeking a haven for their investments. However, Indians have always been our top investors, and in 2023 they made up 32 per cent of our customers in the UAE."
Is There a Bubble?
What goes up can come down. The late-2008 financial crisis hit Dubai hard with company closures and job losses after a surge in prices, and the recovery that followed was interrupted by the Covid-19 pandemic in 2020. So is this a new bubble? "No, there is no bubble," says Sajan.
"In fact, if we go by the property rates across the major global cities around the world such as New York, Hong Kong, London, Paris, property prices in Dubai are undervalued by two to three times. Swiss bank UBS, in its latest Global Real Estate Bubble Index 2023, ranked the Dubai property market as 'fairly valued', which proves that there is no bubble. Keeping in mind population growth and supply of new residential units, in coming years we can safely say that the market will stay at a fair value and attractive for investors, offering very healthy returns," he adds.
"Dubai remains a robust destination for global real estate investment due to various factors such as world-class infrastructure and a growth outlook. This growth can be attributed to the path-breaking policies adopted by the UAE government, which have had a positive impact on not only the real estate sector but also other sectors of the economy."
He points to other research showing Dubai remains competitive. According to Knight Frank's Wealth Report 2023, Dubai prices are still lower than in London, Hong Kong, Geneva and New York:
| City | Prime property $1m buys |
|---|---|
| Dubai | 105 sqm |
| Geneva | 37 sqm |
| London | 34 sqm |
| New York | 33 sqm |
Henley Private Wealth Migration also estimates that 4,500 millionaires relocated to Dubai in 2023, making it one of the two most attractive destinations for high-net-worth migrants, after 5,000 relocated the year before.
101 Levels: Meet Bayz 101
Around Dubai, Danube's latest showpiece, the Dhs3bn Bayz 101, is advertised on buses, billboards and buildings. Ground will be broken later this year, and when complete in 2028 it will be one of the tallest towers in Business Bay.
Built across 2.1 million sq ft, Bayz 101 will offer studios, 1-, 2-, 3- and 4-bedroom apartments and retail space, with studios from Dhs1.2m. It will have 40 amenities, from a health club, swimming pool, jogging track and sports arena to a workspace, business centre, tennis court, sky bar and doctors on call. Danube's 1 per cent monthly payment plan will help more residents realise the dream of owning a home in one of the world's premier locations.
"This project exemplifies Danube Properties' commitment to delivering exceptional living spaces and redefining the standards of contemporary urban living," says Sajan.
Community Living
Township projects and communities are also adding significantly to the region's real estate sector, Sajan says, as families prefer to live where schools, healthcare, shops and community facilities are close at hand.
"This is a natural progression to the real estate market development. Demand for ready-to-move-in apartments always existed, but with the skyrocketing rents, the demand for off-plan properties has gone exponentially high. As Dubai continues to grow and provide opportunities for professionals from all over the world, we are going to see more professionals moving in with high incomes. They would prefer off-plan as well as ready-to-move-in apartments and villas. So, rent-to-own, mortgages and payment plans will help the developers sell these inventories faster," says Sajan.
Driving Growth Into the Future
Whether building communities or towers of more than 100 levels, Danube has become one of the fastest-growing and largest developers in the UAE.
"Danube Properties has come a long way in perfecting the art of developing homes with all the facilities, amenities and quality finishing and delivering them on time and at affordable price," says Sajan. "For more than eight years, we have delivered affordable luxury to thousands of families. From 2023, we have added the touch of brand by joining hands with luxury brands to bring branded residences to our buyers who like a touch of class in their homes."
He concludes that Dubai will remain a rising giant of real estate development for years to come. "Of late, Dubai has seen a massive increase in investors from new markets such as Western Europe, attracted by higher returns. Most of the global studies have rated rental and capital returns offered by the Dubai market higher than those of other major cities around the world. And this will be a key factor that will dictate the market and drive it forward."
Source: Gulf Business
