With his game-changing 1 percent plan, Rizwan Sajan, chairman and founder of Danube Group, has transformed Dubai's property sector, simplifying the buying process and accelerating the city's shift from renting to ownership.

A Planned Entry Into Property

Despite Dubai's property boom between 2004 and 2007, Rizwan Sajan was a late entrant to the sector, watching the market go wild as people queued to buy.

"Many people advised me to join the property sector since my building materials business was flourishing, but at that time, I found the market to be unbelievably crazy and ultimately, many people had gotten carried away with that boom and left the country," he says.

Things then settled down, Dubai won the bid for Expo 2020, and the escrow account law was introduced, which Sajan describes as a core turning point for investors and developers alike. To curb speculative flipping and prevent an unrealistic boom, the government required escrow accounts, which hold funds securely during transactions, discouraging short-term trading and promoting stability and transparency.

"Earlier, the developer would announce a project on paper and collect the money from the investors; rather than depositing those funds into the bank for the project's construction, they would purchase more plots to launch additional projects," Sajan explains. To secure construction commitments, the government also required developers to provide a significant guarantee and to deposit funds into an escrow account regardless of unit sales, protecting buyers and ensuring projects are completed. "This stabilised the market and the unwanted people who were borrowing money to enter the business left, leaving only genuine investors in the business." Learn more about how escrow accounts protect buyers.

The 1 Percent Plan Is Born

By the time Sajan entered the market, there were already several big players. "While we were doing fantastically in building materials, in real estate, I knew we had to come up with something special to compete because we realised that 80 to 90 percent of expats were still renting, and I wanted to convert them into buying their own properties," he explains. "This is how I came up with the one percent plan."

Changing the mindset of renters wasn't easy, as most were salaried. "Most expats in the UAE have lived here at least four to five years and have accumulated some savings, but not enough to purchase a property for themselves," he says.

"After brainstorming, we devised the one percent plan whereby, in addition to a small down payment, the monthly payment was set at just one percent per month with the balance collected once the building was ready."

The plan was an instant hit and launched his move into the affordable segment. Sajan says Danube came out with highly competitive prices that anyone could afford, with studios at AED 500K to 600K and one-bedroom apartments at AED 800K to 900K, and that buying made sense because buyers could own a home instead of paying rent.

How the Plan Works

The plan drew long queues of buyers. Sajan credits the support of banks to his 30 years in the building business. "The plan was that I would come up with an amount before the handover of the property collection," he says.

Once a building reached 60% completion, banks were willing to finance the remaining 40% of the price, even before the title deed was handed over. This benefited customers, banks and Danube alike, sparing buyers from approaching banks directly, waiting through long approvals or facing uncertain interest rates. The 1 percent plan is the core principle on which Danube Properties was built. See how it compares with a mortgage in our guide to the 1% payment plan vs mortgage.

Serving the Affordable Segment

The buyer mix has changed, Sajan says. "Earlier it was 80 to 90 percent expats and 20 percent foreigners (living overseas), but now the figure has become 50/50 with many looking to make Dubai their second home, which is excellent for the Dubai economy."

While most developers were selling high-end villas, Sajan saw that many residents could not buy where they lived. "Whether they were residing in Bur Dubai, Karama, Sharjah, this group could not purchase property in those areas due to freehold restrictions," he says. So he built homes close to where they lived, adding a touch of luxury and amenities.

"After we offered 40 amenities, we realised we should add more; Danube's success mantra is simple: one project at a time. We prioritize completing and selling out each project before moving on to the next one."

Entering the Luxury Segment

With Fashionz by Danube, created with Fashion TV, Danube Properties entered the luxury market, matching the glamour Dubai is known for. Sajan seized the opportunity when Fashion TV arrived in Dubai.

"Fashionz is furnished by Fashion TV designers with interiors customised specifically for us, not available anywhere in Dubai," he explains, reflecting his aim of creating something unique every time. Fashionz offers more than 40 amenities, including an indoor swimming pool, 24/7 medical services and a kids' play area.

Outstanding CSR

Sajan's first CSR initiative focused on blue-collar workers, teaching them English and computer skills, because their inability to speak English often confined them to heavy labour despite their potential.

Unlike many businesses during the pandemic, Danube Group did not lay off any of its workforce. The decision boosted employee motivation, and the retained staff returned with full dedication, helping the company achieve its highest profits that year.

Future Launches

Danube will continue the same way. "Our policy has been quite simple; launch one project at a time, sell 70 percent of it and put that project into construction; then embark upon the next project," Sajan explains. He points to Fashionz, already 70% sold, and Viewz, 100% sold, with Elitz 2 in JVC next. "If I don't sell, I don't start something new. Only after this is sold, we will move on to the next project; as the market can turn upside down in a few months, I would rather make smaller money and work on one project at a time."

Supply and Demand

Sajan is not worried about supply. "I am not at all worried because, unlike 2008 and 2009, this time the market is completely different. Earlier, it was the flippers and not the demand. Today, the actual demand is coming from the expats who want to stay in a particular apartment or the overseas foreigners who aspire to make Dubai a second home," he says.

He is confident that Dubai's reputation for safety, entertainment, infrastructure, tax benefits and the Golden Visa will keep the market stable for two to three years, noting that new supply is arriving gradually and in a controlled way as developers launch projects steadily.

Fully Furnished, Fully Managed

Danube has also launched a specialist company to manage and lease properties for investors, offering a guaranteed return on investment of 6–10%. A further company handles facility management, from furnishing to maintenance, making ownership hassle-free and worry-free.