Dubai developer Sobha Realty has launched a Dh50 billion ($13.6 billion) development in the emirate, its biggest yet, as it banks on population growth to continue driving demand.
The 37.5 million-square-foot project will be a mixed-use project with about 20,000 homes, along with a hospital, two schools, a mall, plus lifestyle and retail elements.
“Dubai still has good demand for good quality product and the population growth has been sustaining for last few decades … It's unbelievable that a city can sustain a population growth at this level, year on year,” Francis Alfred, managing director of Sobha Realty, told The National.
Strong governance and good infrastructure are the factors prompting this growth, he added.
Sobha Sanctuary will be developed in phases, with the first to include the release of about 250 villas. Handover of units is expected to begin in the third quarter of 2029.
Prices will start from Dh3.99 million.
The overall development will also feature a park in the centre, with amenities such as football grounds, running tracks, padel courts, and a skate park. It will also have green corridors with 50,000 trees, as well as walking and cycling tracks.
Among the residences, about 18,000 will be apartments, with the development expected to offer a range from one-bedroom flats to seven-bedroom villas.
The company did not disclose the location of the project within Dubai.
The launch comes as market trends remain positive, Mr Alfred said. “We are very confident that this master development will be sold much before what we have planned.”
Dubai’s property market has been booming, with the volume and value of real estate transactions hitting a record high last year with the entry of about 130,000 new investors, government figures showed.
The number of transactions reached more than 270,000, up 20 per cent on 2024, according to Dubai Land Department data. The value of these transactions rose 20 per cent year-on-year to reach Dh917 billion.
The emirate's property market has benefitted from government initiatives such as residency permits for retired and remote workers, expansion of the 10-year golden visa programme and overall growth in the UAE’s economy on diversification efforts.
managing director of Sobha Realty
Population growth in Dubai and Abu Dhabi, alongside an influx of a large number of high-net-worth individuals to the UAE, has also pushed property prices and home rents up because of strong demand.
Prices not at peak
Overall, property prices in Dubai rose close to 13 per cent in the 12 months to the end of the third quarter of 2025, while quarter-on-quarter they rose around 3 per cent, data from CBRE shows.
But prices have the scope to continue rising, Mr Alfred said.
“Dubai’s price point is much [more] attractive than any other city – you take London, New York, Singapore, Hong Kong, Tokyo, any other city, in terms of price per square foot and the quality standard for the city offer, it is far, far underpriced,” he said.
“So, I believe long term … there is still so much room for growth in terms of price point, and it is a value-added place, you know, you're going to get a higher return on your quality of life for the money you pay than any other city in the world.”
No IPO plans
Sobha reported total sales of Dh30 billion last year, up 30 per cent annually, with growth driven by its projects in Dubai and Umm Al Quwain. The northern emirate accounted for Dh8 billion of the total.
Having launched four projects last year, its UAE portfolio (outside of the latest launch) includes 14 developments, with 12 in Dubai and two in Umm Al Quwain. It is also considering expansion in the US and Australia, but exact plans are being worked on.
Sobha for now has no plans for an initial public offering, Mr Alfred said. “We are absolutely comfortable at the scale [and speed] at which we are growing.”
The company, which tapped the bond markets with two sukuks last year, also does not have any immediate plans for more offerings. Its $500 million sukuk was oversubscribed three times, while its $750 million green sukuk attracted approximately $2.1 billion in orders.
“We are a cash surplus company, so we are not looking at any immediate tapping. But as the year progresses, as expansion happens, we may have to look into all those strategies,” Mr Alfred said.
“As we currently see, it [Sobha Sanctuary] is a six-to-eight-year development project and the current cash flow is good for managing this … It’s a completely paid-for land, so we are standing in a very strong position. So, this gives us the resilience to go through any kinds of market shocks – but we don’t see any [such shocks], the market is quite positive,” he added.
