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Dubai-based developer Danube Properties will award the enabling works contract for 3 billion UAE dirhams ($816.78 million) Bayz101 in Business Bay in the second quarter of 2024, Danube Group Founder and Chairman Rizwan Sajan told Zawya Projects.
The main construction contract for the 101-storey skyscraper will be awarded in the fourth quarter of 2024, with completion slated in 2028, he added.
In July 2023, the developer purchased the land plot from Shuaa Capital, a Dubai-listed investment banking and asset management company, for AED190 million.
Sajan cited several factors behind the launch of Bayz101, including the positive market conditions post-2021, an upturn in demand for homes since the end of the COVID-19 pandemic and the success of Expo 2020.
“Demand for quality homes is going to continue,” Sajan said, adding that developing “more and bigger” projects makes sense, especially when the market is good.
The company’s robust track record and market trust prompted the launch of the skyscraper, which intends to strengthen its market position.
“We now have a solid track record of property launch, development and delivery. Whatever we build – affordable, luxury, and super-luxury properties – all get sold out fast. We are one of Dubai’s most vibrant property developers but needed to up the ante in real estate development.”
Danube aims to challenge itself with Bayz101, intending to elevate its development game and join the league of developers with towers surpassing 100 storeys.
“There are many real estate developers; however, only a handful have built towers that have risen beyond 100 levels. Once complete, Bayz101 will be another, putting us in the big league.”
He pointed out that Dubai remains an attractive global real estate investment destination due to world-class infrastructure and a positive growth outlook.
Despite substantial growth in the past two years, Sajan said Dubai’s real estate market is relatively one-third of prices in cities such as London, Singapore, Hong Kong, and Mumbai.
Favourable government policies have benefitted the real estate sector and other areas of the economy, he stated.
In November 2023, property consultancy Knight Frank said average residential property prices rose by 5 percent in the third quarter of 2023, with growth of 30 percent since the first quarter of 2020 and 19 percent annually. However, prices are still 7 percent below the peak of 2014.
The consultancy said the city’s population is projected to reach 7.8 million by 2040, meaning a significant increase is needed in residential development, especially in prime markets. Nearly 77,874 homes are due for delivery by 2028, excluding branded residences, which is significantly below historical building rates.
The Danube chief predicted a continued 40 percent growth in Dubai’s real estate market over the next two years, which will instil confidence in property buyers.
He explained that investors tend to focus on rental yield and facilities and buy properties in bulk in prime locations while individual buyers prioritise quality, price, location, timely delivery, payment plan and developers’ credentials.
“They have limited household income, and a monthly installment payment scheme will help them make the purchase. So, a convenient monthly payment plan is a big issue for them. Developers matching these will sell more properties in 2024 and beyond.”
The future trajectory of Dubai’s real estate market hinges significantly on evolving demand-supply dynamics, Sajan concluded.
(Reporting by P Deol; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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