Dubai’s Sobha Realty Launches $600 Million US Housing Expansion in Texas

Dubai developer Sobha Realty is investing $600 million to build approximately 700 homes in Texas as part of its broader expansion into the US market, with future plans to enter additional cities across the country, according to a senior executive.

The company, which launched its US operations last year, has acquired about 105 hectares across Celina and Frisco within the rapidly growing Dallas-Fort Worth metropolitan area. Plans involve developing single-family homes across five phases over the next five years. Sales for the initial 34 homes in Celina are anticipated to launch next year, with price points ranging from $1 million to $1.5 million, according to Vipin Das, chief executive of Sobha Realty US, in an interview with The National.

Funding for these projects will come from a combination of debt and internal equity, with the company securing local financing. "Last week we got the first development loan approved for our first two projects from Bank7 and CCB, so that's good news for us," Mr Das stated.

The developer owns 64 hectares of land in Celina and an additional 40 hectares in Frisco, where housing demand is primarily driven by local residents and corporate employees. In Frisco, there is a significant population from the Asian community, whereas Celina features a diverse mix of buyers seeking larger spaces to upgrade their living arrangements, catering to growing families.

Additional demand is being generated by new corporate offices, such as a Goldman Sachs campus designed to support 5,000 employees and regional headquarters for the New York Stock Exchange in Dallas. Meanwhile, telecom giant AT&T is relocating its base from Downtown Dallas to Plano, creating fresh housing demand in North Dallas.

Housing demand in Texas remains resilient, with closed sales volumes for June climbing 8.6 percent year-on-year to reach 34,956, based on figures from the Texas Real Estate Research Centre. The average home sales price in June stood at $342,900.

Sobha Realty aims to establish a national footprint by expanding into other US cities, with Houston, Austin, Nashville, Phoenix, and Florida targeted for potential developments. Mr Das noted that the firm is actively exploring opportunities in Houston and Austin.

Beyond the US, Sobha is also targeting expansion in Australia following land acquisitions in Brisbane and the Gold Coast, with construction expected to commence next year pending regulatory approvals.

Founded by Pnc Menon—who started his entrepreneurial path in Oman during the 1970s via an interior decorating business—the firm has experienced rapid growth in the UAE, with ongoing projects across Dubai, Abu Dhabi, and Umm Al Quwain.