Dubai: Sobha Realty, based in Dubai, plans to launch a 200-acre development in MBR City by mid-2022, just next to its 183-acre Sobha Hartland. It is estimated to cost $4 billion(AED14.69 billion) or more to build the ‘Hartland Sanctuary’.
“We will finish using up all of the Hartland area for our development in the next four years,” said P.N.C. Menon, founder and Chairman of Sobha Realty. “That requires us to be well prepared with another sizeable launch – Hartland Sanctuary – well before that – the 200 acres should keep us busy for 10 years.”
In addition, Sobha has other pressing reasons for pushing forward with a project of that scale. The developer will close 2021 with booked sales of $900 million and aims to clear $1 billion next year. They are mostly from the Hartland inventory, as well as Shaikh Zayed Road projects.
During the current upturn, Sobha was among a few developers, including Emaar, Damac, Majid Al Futtaim Properties and Nakheel, that had ready properties, especially villas and townhouses in demand.
“By July next, we will be ready with the designs, the approvals and everything needed for the new project – and we will then launch offplan as well,” said Menon. This too could serve the developer, going by current trends, where offplan sales are zooming up the charts and could soon overtake sales of ready homes once again after a 12-month gap.
Not a delay
Menon dismissed the idea that the sales of the new project could have been done even now because of the growing investor appetite for villa and townhouse schemes in MBR City and elsewhere.
“This Dubai recovery has got strong legs, and will continue well into 2022 and beyond,” the Chairman added. “We maintain a consistent pricing policy (irrespective of market movements) and we are confident that we can deliver something to match the Hartland.”
Since late 2020, Hartland and Emaar’s Dubai Hills Estate have been the two most prominent relatively new residential destinations attracting buyers. Nakheel’s Nad Al Sheba community experienced steady transaction volumes, while The Palm continues to score major wins.
Nakheel’s Jebel Ali Village could also become a strong contender in the coming days, particularly in the luxury villa space.
Not buying – more land
Sobha will not, however, buy more land. “We have enough to take care of our needs for the next 10 years,” said Menon. “That’s more than enough for now.”
A skyscraper too
On Shaikh Zayed Road, the developer is also launching a 240-metre-high, 60-storey super-luxury mixed-use tower. Known as ‘The S’, the project will house Sobha’s corporate headquarters when completed. Most of the space will be occupied by offices. With an overall sales value of Dh1 billion plus, the tower will likely be completed in 2024.
“The best part of this market upturn is that our inventory levels keep dropping – for a developer, can there be anything better than that?”