Dubai's real estate market keeps turning towards property end-users. And affordability becomes a determining factor in this sense. Recently Dubai’s developer Danube has launched its fifth affordable housing project with units available at a price from USD 272 psf in Dubai's Al Furjan.
The Ritz residential community will include 446 housing units situated close to another popular Dubai's location Discovery Gardens. The construction cost of this community within a large-scale residential area is USD 81.7 million, which raises the cost of the entire development to USD 410 million at the moment.
By investing such funds in the development of affordable housing sector in Dubai, Danube rightly expects growing demand from the middle-income end-users in the next few years. Official estimates reckon the Dubai population will grow from 2.4 million to 6 million by 2020.
“Even if we assume that only 75,000 of these are white-collar professionals with families, that’s still a substantial number that the emirate will have to absorb. But the new residential supply is only averaging 10,000-15,000 new units a year,” said Rizwan Sajan, Chairman of Danube Group.
Additionally, the apartment layout in the Ritz is planned so as to maximize the living space, so that a one-bedroom units could be easily converted into two bedroom spaces, etc. Besides, these units are coming fully furnished.
Thanks to favorable payment plans and construction terms allowing buyers to start getting up to 8% of yields as soon as in two years, these affordable units are also perfect investment assets.