UAE developer Arada is contemplating an IPO in the future, according to its group chief executive, Ahmed Alkhoshaibi. This announcement follows the rapid sell-out of its new Dh5.6 billion ($1.52 billion) project in Sharjah, which saw all 2 000 units sold in just three hours, highlighting strong demand in the real estate market.

Alkhoshaibi indicated that the company is looking at a potential listing in three years, contingent upon market conditions and Arada’s performance during that time. The UAE’s real estate market has been experiencing significant growth due to robust investor demand and government initiatives that encourage residency.

Located in Sharjah, the Masaar 2 development spans 975 000 square meters. Construction is set to begin before the end of 2025, with the first homes expected to be completed by the end of 2027. The entire project, which will include a range of amenities, is scheduled for completion by 2028. The units available range from two-bedroom townhouses to five-bedroom villas, featuring a large-scale, swimmable forest lagoon with a waterfall.

Prince Khaled bin Alwaleed, executive vice chairman of Arada, remarked that Masaar 2 reflects the robust strength of the Sharjah market and the UAE’s appeal as an exceptional investment destination. Alkhoshaibi noted that the investor demographic for this project is diverse, thanks to recent changes in Sharjah’s real estate laws that now allow freehold properties for all nationalities.

He highlighted an increase in interest from investors, particularly from countries such as India, Pakistan, Australia, Canada, Germany, and England. While Indians represent the largest percentage of investors, other nationalities include westerners, Eastern Europeans, Arabs, and nationals from the Gulf Cooperation Council (GCC).

The Sharjah real estate market has demonstrated strong growth, with transaction volumes increasing by 48% to reach Dh40 billion last year, according to the Sharjah Real Estate Registration Department, as reported by the state news agency Wam. The number of properties traded also rose to 45 676, up from 31 229 in 2023, driven by strong infrastructure and the new regulations allowing non-citizens and Gulf nationals to own real estate.

Currently focused on the Sharjah and Dubai markets, Arada is eyeing expansion into other emirates, including Ras Al Khaimah and Abu Dhabi. Alkhoshaibi stated that the company aims to continue aggressively expanding, as they believe it is essential for balance within the UAE market.

In addition to local expansion, Arada is also assessing opportunities in the wider Gulf region, particularly in Saudi Arabia, with plans to enter that market soon. The developer also intends to double its portfolio in Australia to 5,000 homes over the next three years, having launched key projects in Sydney in August 2024. Alkhoshaibi emphasized that each expansion must add value and be unique or competitive in the market.

Founded in 2017, Arada encompasses property development, retail, education, and hospitality sectors. The company has been expanding its operations significantly, having recently launched the Dh5 billion W Residences at Dubai Harbour, responding to the soaring demand for luxury properties in the emirate.