Danube Properties on Monday launched its latest residential project – a Dh300 million development in the Al Furjan area of Dubai near Discovery Gardens – targeted at the affordable segment.

The 450-unit Ritz development is Danube's fifth project following the unveiling of the 171-town house Dreamz in Al Furjan, the 292-unit Glitz 1, the 292-unit Glitz 2, and 352-unit Glitz 3 in Studio City. The launch brings the total value of its portfolio to date to Dh1.5 billion.

The property developer, which is part of the building materials business Danube Group, is unperturbed by the slowdown in the property market.

"The majority of the slowdown is in the luxury apartment [segment],” said Rizwan Sajan, the founder and chairman of Danube Group. "I don't think property prices in the affordable section can go down more than this.”

Dubai residential property prices softened this year. Average prices fell by a further 4 per cent in the final quarter, meaning that apartments were 16 per cent cheaper than a year ago and villa prices were 14 per cent cheaper, according to the broker CBRE.

Nearly a third of all the homes expected to be completed in Dubai this year are yet to be handed over to buyers, CBRE said.

Poor market conditions and construction delays have been blamed for the situation as brokers slashed their estimates for completions.

CBRE said the delay in handovers meant that it has had to revise down its forecast, made at the start of the year, for the number of new homes to be completed in the city this year from 20,000 to 14,000.

Mr Sajan said the current supply of homes in Dubai is not enough to meet future demand from an increase in population, which he said will go up by 1 million people in the next five years from the current 2.4 million.

"Real estate is a long-term business and I am a firm believer of the long-term sustainability of Dubai's economy, which is very resilient,” said Mr Sajan. "Besides, a moderate approach to Dubai's economic and demographic expansion shows that the emirate will need 18,000 new homes per year for the next five years to accommodate the 1 million consumers, all of whom will need accommodation.”

Danube is selling a fully furnished studio at Ritz, starting at Dh430,000, a fully furnished one-bedroom from Dh750,000 and a fully furnished two bedroom from Dh990,000.

Source: The National