GREM investigates Sobha: High building standards

Business Structure & Internal Communication

Sobha Realty is part of the Sobha Group, led by founder P.N.C. Menon and his son Ravi P.N.C. Menon. In November 2024, Ravi Menon formally took over as Chairman of the Board of Directors (Sobha Realty, 2024; The Economic Times, 2024). The organization is vertically integrated and manages many parts of the construction process itself, from design to furniture production (Construction & Architecture Magazine, 2023).

While this structure should promote efficiency, interviews and online employee reviews highlight inefficient internal communication, a micromanagement culture, and high staff turnover (Indeed, 2024; Glassdoor, 2024). Employees speak of a “hire-and-fire” culture, limited autonomy, and internal rivalry. At the same time, learning opportunities and improved employment conditions since 2023, including an employee bonus of AED 150 million, are reported (BestStartupStory, 2024).

Customer Satisfaction & After-Sales

Interviews with buyers who have expressed themselves on public platforms show a clear contrast between build quality and customer experience after purchase. Customers are positive about the completion of projects such as Sobha Hartland, but report recurring complaints about slow refunds, poor communication and lack of follow-up to administrative questions (Reddit, 2024; Trustpilot, 2025).

Several buyers interviewed are waiting months for reservation fees (up to AED 50,000) to be reimbursed, despite commitments from Sobha's sales teams. GREM's own experiences confirm this pattern: during sales, contact is professional, but follow-up deteriorates significantly after purchase. Technical flaws, on the other hand, are usually remedied quickly — something both buyers and GREM see as positive.

Reputation & Saleability

Sobha has a strong name in the luxury segment and projects achieve above average rental income (Realiste, 2025). However, market research shows that off-plan units are more difficult to resell because many similar apartments come on the market at the same time — such as the different phases of Riverside Crescent (Investment in Dubai, 2025). Brokers indicate that Sobha's luxury units are popular, but that Emaar projects usually sell faster thanks to better brand awareness and marketing networks (GREM interview, 2025).

Build Quality & Technical Security

Sobha is known for its high finishing standards and manages many processes in-house. This leads to fewer structural complaints than many competitors (Construction & Architecture Magazine, 2023). Independent reviews and interviews confirm the solid construction, with few structural problems or leaks. Sobha uses thicker masonry, high-quality materials and has an internal quality laboratory (CTF Assets, 2024).

The projects structurally comply with Dubai's building regulations and are often completed before the scheduled date (BestStartupStory, 2024). Customers can make site visits during construction, which builds confidence in the delivered product.

Financial Stability & Growth Strategy

In FY24, Sobha Realty achieved sales of AED 8.9 billion and a net profit of AED 1.9 billion. The company reports a “negative net debt” position and received higher credit ratings from Moody's (Ba2) and S&P (BB) in July 2024 (DDCAP, 2024). In addition, Sobha has a “revenue backlog” of more than AED 23 billion for future years (Sobha Realty, 2024).

The funding mix includes equity, bank loans, and sukuk bonds. A USD 300 million Islamic bond was issued in 2023, expanded to USD 500 million by 2024. In 2025, Sobha is considering a new sukuk for land acquisitions in Dubai (Bloomberg, 2025). This strategy points to healthy liquidity and willingness to invest.

Summary

Sobha Realty combines above average build quality with strong financial fundamentals. The projects score well on completion, compliance with building regulations and timely delivery. However, there are structural shortcomings in administrative follow-up and after-sales communication — a risk for buyers who expect to be provided with customized service. The risk of oversupply within Sobha's own communities also deserves attention, especially for investors who aim for a short-term increase in value.

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