Dubai developer Sobha Realty is launching two new megaprojects worth Dh24 billion ($6.53 billion) as it taps into a recovery in the UAE’s property market.
The two new projects, named Sobha 1 and Hartland 2, will be built close to the company’s Sobha Hartland master development in MBR City, Francis Alfred, managing director of Sobha Realty, told The National in an interview on the sidelines of Cityscape Dubai on Monday.
“The two projects put together will have close to 10,000 apartments in 220 acres and the full-scale construction will begin next year,” Mr Alfred said.
The new developments, which are expected to be completed in five to eight years’ time, will be financed through a mix of debt and equity.
The launch of new projects comes as UAE property continues to recover from the coronavirus pandemic-induced slowdown on the back of government initiatives such as residency permits for retirees and remote workers, as well as the expansion of the 10-year Golden Visa program and the economic boost generated by Expo 2020 Dubai.
“Dubai market overall is good and we have been doing exceptionally well,” Mr Alfred said.
“We have been delivering all projects on time to the quality standards. It’s been a great journey in 2021 and 2022 is even better … hope it continues into 2023.”
In Dubai, average residential prices in the third quarter grew by 9 per cent annually while average rental rates rose by 25 per cent, with both sales and rentals bolstered by more robust demand and increased buyer activity, according to a recent report from consultancy JLL.
In Abu Dhabi, sale prices during the three-month period climbed 4 per cent while average rents increased by 2 per cent annually, the report said.
This year, the company also launched a residential tower named ‘The S’ with 84 units on Sheikh Zayed Road, and it is “almost sold out”, Mr Alfred said.
The company has been selling its property to different customers from Europe to Asia to Africa and “we have seen more traction from Russia and from the East European belt”, he said.
The company is aiming for Dh9 billion in sales this year and Dh12 billion in 2023 as the market rebounds, according to PNC Menon, chairman of Sobha Realty.
“The advantage with us is we are a totally backward integrated real estate company — we do construction, we do manufacturing, we do design and engineering,” Mr Menon said.