Dubai’s Danube Group posts 83% rise in turnover
Developer expects 15-20% growth this year, and plans 3-4 new real estate projects annually, as revenues hit $1.4bn in 2015
Danube Group has announced revenues of AED 5.13 billion ($1.4bn) for 2015, 83% higher than its AED 2.8 billion ($762.3m) turnover in 2014.
The Dubai-based developer did not provide profit figures, but said it is expecting 15-20% growth in 2016.
Danube specialises in “affordable” residential property – although the company’s founder and chairman Rizwan Sajan said he intends to expand the company’s retail operations.
“In 2016, we plan to open six more retail stores in the region with an investment of over AED 200 million and we will have a total of 50 Danube stores,” he said in a statement.
Sajan said that Danube Properties will focus on launching more projects in the low-cost housing segment in order to bridge the gap that exists in the market.
“Our last project, Starz Tower by Danube is 100% sold out and in May we are launching another project. Given the popularity of our projects we will continue launching three to four projects in a year.”
Sharing his thoughts on the effect on the property slowdown, Sajan said Dubai property prices are still lower than other major cities around the world such as Mumbai, Singapore, London and Hong Kong. He added that the new low-price environment offers a great opportunity for consumers to benefit from not only the asset but the price appreciation of the asset when delivered.
“The current economic environment offers perhaps the best opportunity for home buyers as well as investors. First, the home buyers will be able to save them from the increased high rent in Dubai that will affect their savings. Besides, the apartment will command higher value and rent – in case the home-owner wants to sell or rent out. Either way, there is guaranteed higher return.”
