UAE developer Arada is open to the possibility of an initial public offering in the future, its group chief executive said, after it sold out its new Dh5.6 billion ($1.52 billion) Sharjah project in three hours amid strong demand in the real estate market.
“We are looking potentially to list in three years' time but this is subject to both market conditions and our own performance during that period,” founder and group chief executive Ahmed Alkhoshaibi told The National.
The UAE's real estate market has been booming in recent years amid strong investor demand and residency initiatives by the government.
Sharjah-based Arada had sold all 2,000 units at its 975,000 square metre Masaar 2 development by noon on Thursday, making it the company's fastest-selling off-plan project in the emirate, it said on Thursday.
Construction at the project is due to start before the end of 2025, with the first homes scheduled for completion by the end of 2027. The full development, with all its amenities, will be ready by 2028, Arada said. The units range from two-bedroom townhouses to five-bedroom villas, and features will include "a large-scale, swimmable forest lagoon with waterfall".
Masaar 2 "reflects the impressive strength of the Sharjah market and the wider interest in the UAE as an exceptional investment destination overall", Prince Khaled bin Alwaleed, executive vice chairman of Arada, said in a statement.
Investors at Masaar 2 comprise a diverse demographic thanks to changes in Sharjah real estate laws that opened up freehold properties to all nationalities, Mr Alkhoshaibi said.
“We've seen a growth in Indians, Pakistanis, Europeans and westerners … and [we also have investors coming in] from Australia, Canada, Germany and England,” he said.
“Indians remained the biggest percentage as an individual nationality and the rest is divided between westerners, Eastern Europeans and Arabs, GCC and UAE nationals.”
The Sharjah real estate market has seen strong growth with transaction volumes up 48 per cent to Dh40 billion last year, the state news agency Wam reported last month, citing the Sharjah Real Estate Registration Department.
The number of properties traded by investors also increased last year to 45,676, up from 31,229 in 2023, thanks to strong infrastructure, "the diversity and availability of real estate products, and the decision to allow non-citizens and Gulf nationals to own real estate in Sharjah", the report said.
Arada, which currently serves the Sharjah and Dubai markets, is also looking at entering other emirates, Mr Alkhoshaibi said.
“We have Ras Al Khaimah coming up soon and we're looking at Abu Dhabi,” he said. “We want to continue [aggressively expanding]; we think that's a good balance in the UAE.”
In the wider Gulf region, Arada is also “studying” the market in Saudi Arabia. “We're very close [to entering it],” Mr Alkhoshaibi said.
The developer is also looking to double its Australia portfolio to 5,000 homes in the next three years, he said. The company entered Oceania's biggest economy in August 2024 with key projects in Sydney. A “fourth market somewhere” is also being considered, Mr Alkhoshaibi said.
“We don't just expand for the sake of expanding. If we can't add value to our market, be unique or be competitive, we don't enter it,” he added.
Arada, set up in 2017, covers property development, retail, education and hospitality. It has been expanding operations, and in October launched the Dh5 billion W Residences at Dubai Harbour, as demand for luxury property continues to soar in the emirate.
