Danube chief says 2015 'year of affordable' homes
Convenient payment plans and affordable homes dominated 2015 as the UAE moves towards Dubai Expo 2020, Rizwan Sajan told Construction Week
The non-luxury property segment is set to grow in Dubai, with 2015 being the "year of affordable housing", an industry expert said.
Rizwan Sajan, chief of Danube Group and Danube Properties, told Construction Week he believes last year also witnessed the rise of better financing models.
"Without a doubt, 2015 was the year of affordable housing and convenient payment plans," he said.
Remarking on his foray into the real estate sector, he continued: "We started the properties division with clear focus on affordable housing segment.
"We identified the gap that existed in the market which was too focused on luxury and super-luxury segments while the mid-income population was left untouched.
"They form a very high percentage of the local population and majority of this population having stayed in the UAE for [a] long [time] consider Dubai their home," he added.
Sajan said a core motivation towards affordable housing is the anticipated population growth in the UAE.
"I am expecting population growth of at least 1.5 million people in the next five years, before Dubai Expo 2020, of which I would say 40% (about 600,000) will be white-collar workers," he explained.
"To cater to that number, you require 150,000 new homes considering average family of four people each.
"So you’re talking about delivering 30,000 apartments per year in the next five years," Sajan continued.
"The planned delivery of property in the market is not more than 18,000 to 20,000 homes leaving a sizeable deficit in supply assuring high return backed by consistent demand."