Danube Properties is all for the common man

Developer goes the extra mile to build homes for the mid-income segment

Innovative payment plans have been the cornerstone of success for projects targeting the middle income segment in Dubai. Developers who have smartly tweaked their payment structures to cater to the financial situation of the mid-income population have reaped rich dividends.

Danube Properties has been a pioneer in introducing the unique 'one per cent per month' payment plan for its affordable housing projects. No wonder then that a majority of units in its residential portfolio has been sold out.

"Over 96 per cent of our total inventory has been sold across all our projects. Our projects Glitz Residence 1, Glitz Residence 2, Starz Tower and Glamz Residence by Danube are 100 per cent sold out. The limited inventory we retained in Dreamz and Glitz Residence 3 is available on a very exclusive basis," says Rizwan Sajan, founder and chairman of Danube Group.

With projects spread across Al Furjan and Dubai Studio City, Danube Properties has been at the forefront of the 'affordable housing' movement reshaping the Dubai property sector.

"When we started our property development business with our first project Dreamz, the target market did not require a payment plan. However, when we launched our first apartment block Glitz Residence 1, we felt a strong need for our payment plan to target the appropriate segment of the market. We pioneered the 'one per cent per month' payment plan. We remain the only developer to offer such an attractive payment plan," Sajan adds.

The buyer pays a down payment on the property and then reverts to the payment plan. The payments until handover are self-financed by the buyer. As per the UAE Central Bank, the maximum loan amount for the purchase of an off-plan property shall be 50 per cent of the value of the property.

"In our case, we hand over the property while the buyer has paid 50 per cent to 52 per cent, that too without any interest. This makes investment in our property convenient and attractive," he explains.

Target market

Danube Properties has been vocal in its advertising campaign, asking renters to turn into home owners. "Generally, our target market are those people who have lived in Dubai for five to 10 years with a little bit of saving to pay the down payment and with the capacity to pay Dh5,000 to Dh10,000 in monthly installments," the chief executive informs.

With a Dh1.8 billion portfolio, Danube Properties believes in taking a slow and steady approach to development. It will only buy plots and launch a new project once construction is under way on the previous development.

"As a responsible developer, we want to remain focused on timely delivery and excellent construction rather than just launching new projects. We have ensured that the construction of existing projects has commenced before launching our next project. We ventured into the property development business with long-term plans. We firmly believe that your reputation as a successful developer is established through delivery of your projects, not just by launching new projects. Soon after we have started construction of Glamz, you will hear about our next project," he outlines.

Being in the building materials business will help the Danube Group to achieve economies of scale on its property projects. It belies claims that mid-income projects come with low specifications and cheap materials.

"A lot of developers misunderstand affordability as cheap and such properties would certainly be of poor quality, leading to maintenance issues and value depreciation. We have believed in creating affordability through value engineering, creating area efficiency and selecting the right building materials. Our properties, although affordable, come with the most superior quality of finish and world-class amenities, making possible a high standard of living at economical price," Sajan clarifies.

Buyer profile

The group's projects have attracted a high percentage of end users. However, there have also been investors looking to create a portfolio driven by rental yields.

"Our price point and payment plan is structured in such a manner that it doesn't attract flipping at all. To keep away from people wanting to flip for a quick buck, developers need to be firm with their strategy and not engage in any form of speculative trade," advises Sajan.

"If you offer the right product at a competitive price along with the right payment plan, then there will always be customers who will rally behind you no matter what," he concludes.

- deepthi@khaleejtimes.com