Rizwan Sajan, Founder and Chairman of Danube Group, stated that the Dubai-based Danube Properties plans to award the construction contract for the Bayz101 project located in Business Bay in the second quarter of 2024, with completion expected by 2028. The company acquired the plot from Shuaa Capital for AED 190 million in July 2023.
Several factors support the launch of the Bayz101 project. Firstly, market conditions have been positive, especially since the real estate market began to recover since 2021. Secondly, with the gradual end of the COVID-19 pandemic, residential demand has been gradually rebounding. Additionally, the successful hosting of Expo 2020 in 2020 has provided favorable conditions for the project.
Sajan explained that the demand for premium residences will continue to grow, especially in favorable market conditions, making it meaningful to develop more and larger projects. Danube Properties has had a good track record in launching, developing, and delivering real estate, quickly selling out properties, whether they are economical, luxurious, or ultra-luxurious. They aim to further consolidate their position in the market through the Bayz101 project.
The Bayz101 project will be one of the few skyscrapers in Dubai to be constructed with over 100 floors. Once completed, Sajan stated that it will place Danube Properties among the world's leading real estate developers. He pointed out that Dubai remains highly attractive as a global real estate investment destination, thanks to its world-class infrastructure and positive growth prospects.
Despite significant growth in Dubai's real estate market over the past two years, its prices are only one-third of cities like London, Singapore, Hong Kong, and Mumbai. Government incentives have greatly benefited both the real estate industry and other economic sectors.
According to real estate consultancy firm Knight Frank, residential average prices in Dubai rose by 5% in the third quarter of 2023, marking a 30% increase since the first quarter of 2020, with an annual growth rate of 19%. However, prices are still 7% lower than their peak in 2014.
Knight Frank forecasts that Dubai's population will reach 7.8 million by 2040, which means a significant increase in residential developments will be needed, especially in prime locations. Excluding branded residences, nearly 77,874 residential units are expected to be delivered by 2028, far below historical construction levels.
Danube Properties' leadership predicts a further 40% growth in Dubai's real estate market over the next two years, which will boost confidence among property buyers. Investors tend to focus on rental yields and amenities, purchasing a large number of properties in prime locations, while individual buyers prioritize quality, price, location, timely delivery, payment plans, and developer credentials. Convenient monthly payment plans are an important consideration factor for buyers. Danube Properties plans to sell more properties in 2024 and beyond to meet market demands.
