Danube Properties has announced plans to build a 101-storey tower in Business Bay, the latest major project to be announced in Dubai.
Bayz101, which will have 1,346 apartments, is the developer's largest project to date in terms of both units and overall space.
The 2.1 million square feet development will include apartments from studio size, which start at Dh1.2 million, up to four bedrooms, which start at Dh5.8 million.
The larger apartments in the project – the majority of two-beds, all three-beds and all four-beds – come with their own swimming pool.
The tower will also have a rooftop swimming pool, a health club and a jogging track.
The project's total development value is more than Dh3 billion.
Bayz101, which is Danube Properties’ 28th real estate project in Dubai, is expected to be completed in 2028 and will be among the world's tallest residential towers, alongside Princess Tower and Marina 101 in Dubai Marina.
Rizwan Sajan, founder and chairman of Danube Group, described its latest launch as a “historic moment” for the developer.
“Bayz101 is a dream and it is also our statement. It reflects our larger-than-life dream and it also reflects that we convert our dreams into reality,” Mr Sajan said.
“It is a historic moment for us as we announce the biggest and tallest tower in our portfolio.”
The company has launched 28 projects since it entered the real estate market in June 2014, with a combined development value exceeding Dh18 billion.
The project launch is the latest in a series of high-end launches in recent weeks.
On Thursday, Arada launched sales of its luxury project in Dubai, the Armani Beach Residences at The Palm Jumeirah, while London Gate unveiled the design and interiors for its Franck Muller Aeternitas tower in Dubai Marina on Tuesday.
Both developers confirmed plans to launch further luxury projects in the coming months.
In December, Sankari Properties, a new entrant in Dubai's property market, announced plans to build a $1 billion ultra-luxury development in Business Bay.
Dubai property sales continued to register price increases in recent months.
Real estate broker CBRE said residential prices rose by 19.6 per cent annually in the third quarter, with prices for apartments and villas increasing by 19.7 per cent and 18.9 per cent, respectively.
It said sales of properties worth more than Dh5 million and Dh10 million in the emirate hit record levels in 2023, rising by 54.5 per cent and 68.4 per cent, respectively.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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