NRIs Lead the Property Buying Surge in Dubai's Real Estate Market
DUBAI: The Dubai real estate market has experienced a substantial shift with the introduction of new property ownership norms. The government now allows foreigners to own residential and commercial properties on a freehold basis, leading to a surge in property purchases. Notably, almost a quarter of these properties are being bought by NRIs, with the British following closely as the second-largest buyers.
According to Rizwan Sajan, the founder and chairman of the Danube Group, NRIs make up around 23% of the Dubai real estate market on average. However, for his company, this figure is closer to 30%. Pre-Covid, the ratio was only around 18%. “The Europeans, led by the British, are the second largest buyers here,” Sajan noted during an interview with TNIE.
Sajan, who grew up in a Ghatkopar slum and started his journey in Dubai with no savings after losing everything in Kuwait following its invasion by Iraq, has built a formidable empire. His group, Danube, recently announced the launch of Shahrukhz, a premium commercial property named after the Hindi actor Shah Rukh Khan. The 56-storey tower, spanning 1 million sqft and comprising 488 units, is fully sold out on its launch day, generating sales worth Rs 5,000 crore or around 2.1 billion dirhams.
The Shahrukhz project is located in the central business district on Sheikh Zayed Road, a key arterial route in Dubai. It offers over 35 amenities, including a sky pool, a dedicated helipad for air taxis, valet services, and exclusive executive lounges. The prime location also provides easy access to iconic destinations such as the Burj Khalifa, the international airport, and the Gold Souk.
Sajan, who introduced the signature 1% monthly payment plan in Dubai when he entered the property market in 2014, continues to democratize property ownership. Danube Properties, a $3 billion company, is one of the fourth-largest builders in Dubai, following Emaar, Nakheel, and Shobha Developers. Since its inception in 2014, Danube has launched 41 projects, with 20 successfully delivered and the rest in advanced stages of construction. The company is known for offering fully furnished apartments, setting a new benchmark in the industry.
When asked about his plans to enter the Indian market, Sajan stated that he would consider it only if Dubai and the UAE start to slow down. However, he emphasized that there is currently no sign of a slowdown. The new commercial tower, which will be completed by 2029 at an investment of around Rs 1,500 crore, will be a significant addition to Dubai’s skyline. Each unit starts at $460,000.
Adel Sajan, the managing director of Danube Group, revealed that the celebrity-branded commercial tower was conceptualized after studying over 100 prime office projects globally. Of the one million sqft planned, over 900,000 sqft will be Grade A office space, a segment experiencing a supply crunch in Dubai. This year, the company expects to achieve property sales of Rs 22,000 crore.
The Danube Group's success and the significant presence of NRIs in Dubai’s real estate market highlight the city's appeal as a global investment hub. The new norms and the strategic vision of developers like Danube are driving the market forward, making Dubai a preferred destination for property buyers worldwide.
