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Market momentum has not picked up to justify a higher launch price from what it was a year ago, according to a developer who has just come out with his third project in 12 months.
“We have kept the pricing at Dh900 a square foot for the latest launch, it’s better to play it safe rather than take a risk in such a market environment,” said Rizwan Sajan, Chairman of Danube Group. It was in May last year that the building materials group ventured into full-fledged development, anchoring its projects in the mid-tier space. The latest launch — named ‘Glitz 3’ — is also located at Dubai Studio City.
“Maintaining the pricing through our projects also sends a consistent message to our buyers ... and helps sell the stock. Both the earlier launches had hit sold out status in a few hours.”
Expected to cost Dh400 million, Glitz 3 will add a further 352 units to the developer’s pipeline, with unit prices starting from Dh475,000. Danube is again having a 1 per cent payment plan. The third launch adds the developer’s project-related costs to Dh1.2 billion.
“We will focus on a launch at a time ... the gap between launches give us more time to react to market changes,” said Sajan. “That time lag also allows us to focus our energies on building and marketing the latest launch to a certain level before we move to the next one.”
Source: Manoj Nair, Associate Editor, gulfnews.com