A journey that started in 1976 in Muscat, Sobha founder PNC Menon talks about business consolidation, his legacy and a single-minded focus to build a brand that delivers the highest level of design, workmanship and service.
What kind of impact will the $4-billion (Dh15 billion) Sobha Hartland have on Mohammad Bin Rashid (MBR) City, among so many other projects taking shape there?
The Sobha Hartland project was launched in mid-2014 and after four years I can confidently say that all the products launched in the community are on track with the completion and delivery schedule. As a company Sobha has all the key competencies and in-house resources to deliver a project from start to completion, ensuring timely delivery and unmatched quality. So far we have launched Hartland Greens apartment, Hartland Estates villas and town houses and Sobha Creek Vistas. The first set of handovers will commence shortly, which will set the benchmark for quality and these ultra-luxury products are available to investors and end users in the heart of Dubai.
Sobha Hartland is the only fully sustained waterfront community on the Dubai Water Canal and located in the epicenter of Dubai. It boasts amenities like two top international schools, retail, hotels, community mall and other leisure activities all of which are very attractive to buyers. Surrounded by 2.4 million sq ft of green and open spaces and within a 3km radius to Dubai’s top attractions, our project has an edge over any other project in MBR City.
Does the sluggish market worry you? Tell us about your plans to consolidate?
Although markets have come down by 25 per cent to 30 per cent, the sector still has the potential to do sales worth Dh40 billion to Dh50 billion every year. And we foresee that number will grow by about 3-4 per cent every year considering the population growth. The Market maybe sluggish at present but I strongly believe that sound and established players will not be affected by such sentiments. Real estate business is cyclical. No one is able to say how long a cycle is going to last, or whether it is a positive or negative cycle. We expect that if not by the second half of this year, definitely by the first half of 2019 it should be back to normal. There has been a fall in prices but I feel that we’re reaching the bottom. Dubai is well located and well regulated, and property sales here are consistent. For the next 10 years at least, I think the market will be steady.
- PNC Menon
Yes, we are currently in a state of consolidating our real estate business and we will definitely do an initial public offering. That’s the plan. But that’s post consolidation only, so that could be in a few years’ time as I am in no hurry.
Sobha is undergoing a brand makeover. Why this sudden decision to overhaul the brand?
We as a developer specialise in the mid to upper segment of the Dubai property market. We believe this sector alone accounts for around 25-30 per cent of the industry and we will be purely concentrating on this segment since there is a market for it. The biggest challenge for developers is to establish a consistent brand identity in a market that has 50 other players. With a legacy of 42 years in this region, it’s imperative that we strengthen our position as a serious player committed to delivering world-class products.
At Sobha, we are bound by an extremely strong value system, which stems from our core strengths, decades of excellence and a never-ending quest for perfection. A deep and thorough introspection reveals that the brand Sobha is built on four key pillars: a legacy of craft, passion for perfection, complete control and uncompromising. It holds true in whatever we do — be they designing inspiring spaces, executing complex designs, finishing every square inch of space in a premise to perfection, hawk-eyed precision in quality control. The Sobha signature quality is a practice that has been perfected over decades.
Earlier this year you had forecast a “strong double digit growth” for the company in 2018. Now in the third quarter, what do you have to say?
Overall market has dropped by 30 per cent but our performance has been consistent and in fact better than last year. Real estate is a cyclical business and every two to three years, the cycle changes. Dubai is an established real estate market. It has got a sustainable future for residential real estate and yes, things are moving as planned. We have already embarked on the consolidation exercise and plan to double our annual sales volume to Dh2.5 billion by mid 2020.
Are you moving to smaller ticket-size units with Sobha Creek Vistas? What are your mid-market housing plans?
Sobha Creek Vistas is our latest twin-tower apartment project. Its location is within Sobha Hartland and I will not call it budget, because it is high quality but it is the first project in Sobha Hartland with a small ticket size. Simultaneously, we are always looking at opportunities in other parts of Dubai. Once we have firmed up any talks we will be in a position to share further information.
Do you see Dubai as your home ground?
Dubai is a commercial capital for 3 billion people out of the Indian subcontinent, Africa and the Middle East. It is vibrant, well connected, safe and beautiful. I consider Dubai to be my home even though I have spent major part of my life in Oman and India. The vision of His Highness Shaikh Mohammad Bin Rashid Al Maktoum [UAE Vice-President and Prime Minister and Ruler of Dubai] is extraordinary and with so many new reforms being introduced, I don’t see any reason for anyone to not consider Dubai as their final home ground.
You dropped out of college and headed to Muscat with 50 rupees in your pocket. Today your real estate empire extends from the GCC to India. What next?
From designing palaces in the Gulf, winning contractual projects around the world, launch of Sobha India and launch of three major projects in the UAE, it has been an extraordinary journey which started in 1976 in Muscat, Oman. After four decades of experience, I can say that we are at present in a state of consolidating our existing real estate business, which will be done in the next one to two years. Post the consolidation, we will definitely be looking at real estate investments in other regions.
How would you define your legacy?
It’s now time to raise the bar even higher. Focusing on the belief that the three key elements that make a great home are great design, unmatched service and uncompromising quality, my legacy seeks to create sublime environments that would be home to the world’s most discerning. With a single-minded focus to build a brand that consistently delivers the highest level of design, workmanship and service, I pursue a vision to create the very best, for the very best.
