Sobha Realty seeks $1.6 billion in sales amid Dubai real estate market recovery

Dubai-based developer, Sobha Realty, is showing optimism about the UAE real estate market and is targeting $1.6 billion in sales this year. Sobha Realty CEO and managing director Francis Alfred told The National that the company's sales forecast is 60 percent higher than 2021.

"We set a high target as we take into account the market growth and opportunities for a company like Sobha," he said.

The developer plans to start work in the third quarter of this year to develop the new $4 billion Sobha Hartland project with 9,000 residential units in close proximity to Dubai's Mohammed bin Rashid neighborhood due to growing investor demand.

The new project, called Hartland Sanctuary, will also have 9,000 units, including apartments and villas, and will occupy an area of 11 million square feet in the MBR City area, Mr. Alfred said.

"We always maintain high quality regardless of good or bad times. On our products... there is a very good response in this market," he said.

The UAE real estate market is recovering from the Covid-19 pandemic thanks to new government initiatives such as residency permits for retirees and remote workers, as well as the expansion of the 10-year golden visa program.

Also helping the recovery of the real estate market were measures to counter the spread of the virus, such as an effective vaccination program in the UAE.

Many foreign residents are investing in local real estate with the aim of settling in the Emirates.

"Dubai has fared well since the pandemic. It is arguably one of the most sought after real estate destinations in the world," Mr.

"Investors from all parts of the world are coming here and we say with confidence that with such government initiatives, including recent ones such as the weekend shift, this momentum should continue. "

Dubai, the Middle East's commercial and tourist hub, recorded 61,241 real estate transactions last year, totaling 151.07 billion dirhams ($41.13 billion), making 2021 the best year for total transaction volume since 2013 and with the highest value since 2009, Property Finder said.

"We believe the momentum should continue, government initiatives have definitely contributed to the growth of the market," Mr. Alfred said.

The price of luxury housing in Dubai rose 44% in 2021, helping the emirate to top Knight Frank's Prime International Residential Index 100, which analyzes the value of premium properties in 100 cities and international second-home markets.

"The relentless demand from wealthy individuals from around the world has led to an impressive revival in Dubai's residential real estate market, and a steady fight against Covid-19 authorities has caught the attention of international investors," said Faisal Durrani, partner and head of Middle East research at Knight Frank.

Sobha plans to hand over keys to 20The project is expected to be completed by 2026.

The apartments in Sobha Hartland are being bought by UAE residents as well as investors from SSA, India, Russia, China and Africa, Mr. Alfred said.

"Dubai is attracting a lot of high-income investors who are ready to invest in quality and luxury real estate properties," Mr. Alfred said.

Sobha is developing projects in India, Oman and the UAE. Last year, its top officials also said the company was considering new opportunities in Saudi Arabia, the Arab world's largest economy by economy, as well as in Britain.

Updated: march 6, 2022, 6:14 am.