Advantage Dubai as Indians Seek Second Homes in the UAE

Dubai-headquartered Danube Properties’ has launched the Dh475 million Skyz at the Cityscape Global exhibition at the Expo 2020 to meet fresh market demand.

The Dubai property market is gathering momentum to reach pre-Covid levels as more buyers from India are back in the market looking for affordable units.

“There is a huge demand for studio, one and two bed room flats in Dubai now. Some of the Dubai units are cheaper than the flats at major cities in India. Danube offices in Mumbai, Kochi, Hyderabad and Ahmedabad are getting calls from several potential investors and buyers,” says Rizwan Sajan, Founder and Chairman of Danube Group.

Rizwan Sajan, Founder and Chairman of Danube Group

Dubai-headquartered Danube Properties’ has launched the Dh475 million Skyz at the Cityscape Global exhibition at the Expo 2020 to meet fresh market demand.

Sajan said the new project provides an ideal investment opportunity for investors who want to benefit from the current low price and a higher premium in two years’ time when prices appreciate to a higher level.

Property prices in Dubai could grow by 20 percent in two years, offering a 5 to 10 percent annual return on investment. In the last 6 months property prices have gone up by 20 to 30 percent in many areas.

With prices starting from Dh399,000 for a studio, Dh599,000 for a one-bedroom apartment and Dh799,000 for a two-bedroom flat, buyers can expect to receive the keys after paying half of the amount through a 1 percent monthly payment scheme. This means they can start earning rents after paying just 50 percent of the property price.

“The attitude of Indian investors is changing. Families are no more travelling just for holidays. They are looking for home away from home to spend quality time with families. The proximity of Dubai is making it the best destination for Indians. The prices are also affordable to average Indian families. The prices are now ranging from half a million dirhams (about Rs 1 crore) for a studio flat to Dh 1 million (about Rs 2 crore) for a two-bed room flat. One bedroom flats are now available for AED 750,000 dirhams (about Rs 1.5 crore).

“With prices for residential units in major cities spiralling in India, Dubai provides global amenities at affordable prices to residents. The newly launched Golden Visas and Retirement visas are attracting a new set of professionals and high net worth retirees. Dubai is offering safe and secure dwelling unit with world class education, health and business facilities. This is the right time to invest in Dubai.”

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Danube is offering an attractive scheme for potential investors. 10 per cent down payment and 100 equal instalments to secure a flat for middle income families.

“The Skyz Tower is an ideal property for end-users and investors who want a second home in Dubai as prices of properties have started to appreciate due to higher investor demand. Buyers can expect to benefit from 20 percent premium if they sell the property after two years when we will hand over the building to the buyers. This translates to a straight 15 percent annual profit – making it a very high return on investment,” said Sajan.

Residential property prices in Dubai increased 4.4 per cent on average in the first eight months of the year, registering the highest annual growth since February 2015, according to real estate consultancy CB Richard Ellis (CBRE). Average apartment prices increased 2.5 per cent and average villa prices increased 17.9 per cent, CBRE said in its third quarter market report recently. 

Danube is also planning to conduct roadshows in major Indian cities and European destinations like London and Singapore.

Average home prices are rising at the fastest pace since February 2015, with transaction volumes surging nearly 77 percent in August from a year earlier — up over 56 percent when compared with the same period in 2019, before the pandemic hit, according to CBRE.

“The demand for new supplies and the demand for new homes will continue to rise. Therefore, it is the perfect time to buy a new home – to benefit from the surge in prices – in order to make good money either through re-sale or rent – that is expected to rise from 2023 onwards. Those shy away from investing – might miss the boat. Think of those who bought properties last year when the prices and market sentiment was the lowest in the middle of the pandemic – and made a killing by selling them at 30-40 percent premium earlier this year – a solid return in just six months. I urge the investors not to miss the boat this time. It is a golden opportunity – as property price now are still 36 percent lower than the previous peak of 2014. So, prices are still low and attractive. You may not make the same profit if you buy later,” said Sajan.

As the UAE celebrating its 50th National Day, the Danube chief praised the wise leadership in the UAE for making the desert blooms.

“Vice-President and Prime Minister of the UAE and Ruler of Dubai His Highness Sheikh Mohammed Bin Rashid Al Maktoum wants to make the city state a destination for the discerning globe trotters. “Within 10 years, the tourism figures will double. Dubai is already attained the status of the world’s busiest airport by displacing London and Paris. With the current pace of growth, Dubai will meet its targets before the stipulated time,” says Sajan.

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