Dubai developer Sobha Realty plans to launch eight to 10 new “multibillion-dirham" projects in the UAE this year amid the country's property boom, while also seeking expansion into the US market, the company's founder said.
The developer, which launched four new masterplans and a number of new towers in existing communities in 2024, will also enter Abu Dhabi with a new residential project, PNC Menon told The National.
“This market has been great for us … great opportunity for doing business” amid support from the government, he said.
Sobha expects 30 per cent annual growth in sales to Dh30 billion ($8.16 billion) in 2025, with its projects in Dubai and Umm Al Quwain contributing Dh22 billion and Dh8 billion, respectively, to the total. The company last year launched a luxury development on Al Siniyah Island, in partnership with Umm Al Quwain Properties.
The company sold homes to people from 50 countries last year, with customers from India, China and the UK dominating the sales.
The property market is expected to be “more or less stable,” this year, Mr Menon added. “You've seen the attraction of others coming here now. The Europeans also have started coming and living here. That's a very good sign for the real estate business.”
The total number of real estate transactions in Dubai reached 188,000, with a combined value of Dh625 billion as of November. This represents a 38 per cent increase in volumes and a 23 per cent rise in values on a year-on-year basis, according to Dubai Land Department data.
Government initiatives, such as residency permits for retired and remote workers and the expansion of the 10-year golden visa programme, and overall growth in the UAE’s economy due to diversification efforts continue to support the property market.
US calling
Sobha aims to expand into the US and Australia to explore opportunities in high-growth markets overseas. Sobha's first port of call is the US, where it is in negotiations to acquire a plot in Dallas, Texas, to launch a residential project, Mr Menon said.
The US “is a huge market, with 330 million people and the economy is also right in terms of the GDP [gross domestic product]. There is a huge opportunity", Mr Menon said.
Sobha has established an office and aims to hit at least $1 billion in sales in the first year of its US project. The company, which aims to fund the new development through its own equity, expects its sales to exceed $10 billion in the following decade.
“We started with Texas and then we may move to the east to Virginia,” he said, without giving the size of the company's investment in the US or when it expects to break ground on its debut project.
Sobha's push into the US is the latest in a string of announcements from Middle East companies that are looking to invest in the country. This month, Damac Properties said it would invest $20 billion to build data centres in Texas, Arizona, Oklahoma, Louisiana, Ohio, Illinois, Michigan and Indiana. It aims to increase its investments under the right market conditions, said chairman Hussain Sajwani.
London-listed Dar Global, a unit of Saudi Arabia’s biggest developer Dar Al Arkan, is also preparing for US expansion, with plans to invest in the country's biggest cities. The company aims to partner with top-tier developers to create luxury residences, serving US and international buyers, it said this month.
Global growth is set to tick along at a steady 3.3 per cent over the next two years, with much of the world's economic activity being driven by the US, the International Monetary Fund said on Friday. US GDP is forecast to expand by 2.7 per cent in 2025, half a percentage point higher than the IMF's October forecast.
The strong 2024 performance – along with a robust labour market and accelerating investment in the country – also accounted for the IMF’s latest upgrade for the US economic forecast.
Sobha was founded by Mr Menon, who began his entrepreneurial journey with an interior decorating company in Oman in the 1970s. His group now has assets across India, Oman and the UAE. It plans to expand to Australia and will “probably not start digging ground this year” for a project in the country, Mr Menon added.
