Dubai developer Sobha Realty has entered Abu Dhabi by launching a Dh40 billion ($10.9 billion) residential project, with its managing director expecting minimal long-term impact from the Iran war on the UAE's property market.
Sobha City, spread across 38 million square feet, will feature 4,000 apartments and 2,500 villas. The waterfront project in Al Bahiya – near Zayed International Airport and Yas Island – also includes a mall, retail spaces, a par-3 golf course, three schools and healthcare complexes.
It will be developed in phases, Sobha executives said on Monday. The first phase, now on sale, will include about a third of the units, with handover scheduled for the fourth quarter of 2029.
Prices start at Dh1.31 million for a one-bedroom apartment and Dh4.96 million for a villa.
The launch of the project reflects the strong demand in the UAE capital, Francis Alfred, Sobha's managing director, told The National in an interview.
“People are waiting for such a development and we see a lot of local buying because we are already seeing that interest, and we also made sure that delivery is not compromised,” he said. “We're going to hand over the development in 2029, which also brings a lot of confidence to people.”
Mr Alfred also stressed that he believes the long-term effect of the 40-day war on the UAE property market will be limited.
“We all believe that this is a short-term problem,” he said. While the company recorded a sharp drop in sales and enquiries as soon as the war began, numbers began to slowly pick up after the first week, Mr Alfred said.
“But then it [the war] was prolonging. The moment the ceasefire [between the US and Iran] was announced, things started picking up again. That's a very good sign,” he said.
During the one-month war period, activity was about 20 per cent to 25 per cent below normal but the ceasefire announcement led to a two-fold improvement.
“So that means people don't have a problem with the long-term prospects … you're only looking at, 'is it the right time to put in the money?'” he said.
“When you look at a city's growth, you can't look at a few quarters or few years, we always look at at least one or two decades.”
