Sobha banks on long-term view

Dubai - Group's landmark projects in Dubai, Umm Al Quwain making steady progress

P.N.C. Menon, chairman of Sobha Group, is a man of few words. His actions, instead, speak volumes about his vision for the group, already India's leading real estate brand and emerging as a force to reckon with in Dubai's crowded property circles.

They say the proof of the pudding is in the eating. Drive down Al Khail Road or Meydan Road and you can see villas emblazoned with the Sobha/Meydan flags taking shape on the horizon. In a joint venture with Meydan, Sobha will soon start handing over villas in its flagship District One project in Mohammed bin Rashid Al Maktoum (MBR) City to home owners and investors.

"We are delivering homes from June until December. Whatever we have sold in phase one will be delivered. By early next year, we can find people living in District One since it takes a few months to do the interiors and fit-outs. Community facilities, pool, lakes, landscaping and a part of the lagoon will also be ready by the time residents move in," says Menon in an exclusive interview with Khaleej Times.

District One will eventually include 1,500 villas, of which 267 were sold in the first phase. Investors can buy plots and choose from three designs to build their four-, five- or six-bedroom villas: modern Arabic, Mediterranean and contemporary.

For the more deep-pocketed, there are opulent seven- and eight-bedroom mansions to choose from. Think basement with four to five parking spaces, private gym with steam and sauna rooms, home theatre, private elevator and the works. These start from Dh60 million and go up to Dh90 million and range in size from 18,000sqft to 32,000sqft.

"We have sold 37 mansions so far. District One is like a piece of fine jewellery. It cannot be replicated elsewhere. It is in the heart of the city and the quality is truly upmarket. There is no offering like our mansions on the primary market anywhere in the world. They are a very exclusive offering for the discerning ones," adds Menon.

District One is also home to the world's largest man-made lagoon, man-made beaches, 60 per cent green space and an 8.8km cycle track around its perimeter. Sobha Group launched 347 villas in Phase 2, slated for delivery in the third quarter of 2017, and 217 villas in Phase 3, to be delivered by the end of 2018.

"Phases 1 and 2 are more or less sold out. Villas in phase 3 are selling. Although the market is a little cool, there are signs of activity picking up," says the chairman, who sounds unperturbed by slowing sales in the market.

"The real estate business is cyclical in any part of the world. It is not confined to Dubai. It takes about five to 10 years to build a brand. For an established brand, it still does reasonable business during a market trough cycle."

Given its USP of being the closest villa community to the iconic Burj Khalifa, District One has attracted a majority of end users and approximately 10 to 15 per cent investors.

"Dubai is a magnet for roughly 3.5 billion people. The target geography is the Indian subcontinent, Africa, the UK, Middle East and the CIS countries. The safety, quality of life, infrastructure, food and shopping in Dubai are comparable to the best in the world. People from the Middle East have gone and settled in the US, Canada and Europe. This is an opportunity for them to return to their cultural roots. Dubai represents the right balance of the West for the Eastern world," vouches Menon.

The group is also making good progress on the $4 billion Sobha Hartland, a mixed-use project in MBR City it is developing on its own. The developer has opened four- and five-bedroom show villas to the public since May. The bigger six-bedroom villas will be situated on the banks of the Dubai Canal, which originates from the Sobha Hartland project and runs all the way until the Arabian Gulf.

"We have sold most apartments that were launched. In terms of villas, we have launched about 39 villas, of which 15 to 20 have been sold," informs the chairman. The first villas will be handed over in December 2017.

Apartments in the Sobha Hartland Greens are priced from Dh1,520 per square foot. Meanwhile, villas are priced from Dh11.5 million and go up to Dh36 million and above.

The group is pulling out all stops to make sure the community is liveable before residents move in. A Hartland International School for children aged from two to nine years is already in operation while Sobha has signed a partnership agreement with the North London Collegiate School to open a facility by September 2017.

While there are plans to have three hotels in the project, Sobha Group will operate one hotel, called the Strada. The entire project will be completed by 2021.