From Fragmentation to Integration

Page 1


From Fragmentation to Integration

A Strategic

Study

of End-to-End Real Estate Development

An ouput of the CTBUH Tall + Urban Innovation Program Partnership

MAIDA YOUNIS

Lead Author

Maida Younis, Assistant Manager, Architecture & Design Coordination, PNC Architects

Co-Authors

James Marvin, CEO, PNC Architects

James Chin, Associate Director, PNC Architects

Steven Michael Fisher, Head, PBU Design

Krishnaprasad Peringath Veedu, Senior Product Development Engineer, PBU Design

Disclaimer

All intellectual property rights in this work, including the views, data and analysis expressed, are owned by Sobha Realty. It is provided to Council on Tall Buildings and Urban Habitat (CTBUH) for the sole purpose of publication on its official website. No part of this work may be copied, reproduced, distributed, or used in any form for any other purpose without the explicit prior written consent of Sobha Realty.

Information disclosed by herein is provided “As Is” and without any representation or warranty, express, implied or otherwise, regarding its accuracy, completeness or performance, or that reasonable care has been taken in its preparation. Sobha Realty is not liable for any damage arising in any way in relation to the use of the information contained herein. Sobha Realty does not accept any responsibility for any interpretation that any person may place on the information or for any opinion or conclusion that any person may form as a result of examining the information herein.

Cover image: © 2025 PNC Architects

© 2025 Sobha Realty. All rights reserved.

Acknowledgements

The authors would like to thank the following departments at Sobha Realty | PNC Architects for their valuable contributions of data, insights, and support in preparing this paper. Contributions are acknowledged chapter by chapter.

Process Improvement & Business Excellence

Revenue Operations & Customer Excellence

Quality & Technology

Sobha Constructions

CRM

Sobha Furniture

Human Resource

Master Planning & Urban Design

POD Design

Introduction

1.1 Introducing Sobha: A Fully Integrated Model in Action

1.2 Sobha’s Integrated Delivery Model: Structure and Execution

Key Business Departments and Metrics

2.1 Quality & Technology

2.2 Construction Speed

2.3 Launch Speed: Siniya Island Project

2.4 Sustainability

2.5 Customer Relationship Management

2.6 Community Management

2.7 Human Resources

2.8 Sobha Furniture Case Studies

3.1 Sobha Hartland II

3.2 Prefabricated Bathroom Units (PBUs)

3.3 Sobha One: Sustainable Certification Conclusion

Bibliography & References

the

Executive Summary

The global real estate sector continues to grapple with the consequences of fragmented project delivery. In many conventional development models, planning, design, construction, and post-handover operations are managed by separate entities. This disjointed approach often leads to operational inefficiencies, delays, rising costs, and inconsistent quality across the project lifecycle.

This white paper examines how Sobha Realty (“Sobha”) has addressed these long-standing issues through a vertically integrated development model that unifies all phases, from concept design to long-term community management, within one organizational structure. Using the Sobha Hartland II development in Dubai and Prefabricated Bathroom Units (PBUs) as case studies, the paper demonstrates how this approach ensures greater command over execution, optimizes timelines and cost control, and delivers consistent quality and service at every touchpoint.

The core of Sobha’s strategy is anchored in two integrated pillars:

n Backward Integration: By internalizing critical upstream processes such as master planning, architecture, structural design, engineering, manufacturing and construction, Sobha reduces dependency on external consultants and contractors. This structure enhances coordination, enforces quality standards, and accelerates project timelines.

n Forward Integration: Beyond delivery, Sobha also controls key downstream activities including sales, leasing, property management, and post-handover services. This enables continuity in customer experience, maintains brand integrity, and builds lasting relationships with homeowners and residents.

Together, these two approaches enable Sobha to operate with agility, reduce transactional overheads, and provide a seamless journey from blueprint to built community. Moreover, the integrated model strengthens the company’s ability to implement sustainability targets, uphold design intent, and offer value-driven urban developments.

Far from being solely a success story of a single developer, Sobha’s integrated model is a replicable and scalable solution for global real estate stakeholders. At a time when cities are striving for carbon neutrality, human-centric design, and long-term resilience, such cohesive frameworks offer a compelling direction for future urban development.

Foreword

Beyond

Fragmentation:

A Case for Integrated Real Estate Development

In today’s fast-paced and highly competitive real estate market, traditional development models suffer from one critical flaw—fragmentation. From material sourcing and architectural design to master planning, construction, marketing, and property management, each phase is often handled by disconnected third parties leading to inefficiencies, cost overruns, misaligned objectives, and inconsistent quality.

The evolution of a fragmented approach not only compromises the developer’s control over timelines and budgets but also results in a disconnected end-user experience. With every transition between vendors, architects, contractors, and brokers, opportunities are lost—opportunities to innovate, to ensure quality, to optimize for sustainability, to move fast, and ultimately, to deliver a product that exceeds client expectations and strengthens customer satisfaction.

These fragmented transitions often create trust deficits between parties, delays in payments, conflicting priorities, and breakdowns in communication that impact the pace, cohesion and overall outcome of the project. Additionally, lack of alignment across teams such as architects, engineers, and contractors operating with siloed goals often results in duplicated work, design inconsistencies, execution gaps, and ultimately, costly delays or rework.

A Solution Rooted in Integration

Backward integration offers a transformative solution: a unified, end-to-end model where every critical stage of the real estate value chain—sourcing, planning and design, engineering and construction—is brought under the developer’s control. This not only reduces reliance on external suppliers and contractors, but also enables tighter coordination, improved efficiency, and better quality control throughout the development process.

Equally important is forward integration, which extends the developer’s control into sales, brokerage, leasing, and property management. By owning the customer experience beyond the point of construction completion, forward integration allows companies to ensure brand consistency, deliver better service to end-users, generate recurring revenue, and gather valuable feedback for future development cycles.

Together, these two strategies form a vertically integrated framework that aligns all stages of real estate development, from concept to community operation, within one organization.

This white paper aims to explore how Sobha Realty has implemented vertical integration, with a focus on backward and forward integration, addressing the systemic inefficiencies of fragmented delivery models and unlocking a new level of operational excellence in the real estate industry. It will examine the benefits of an integrated approach in reducing costs, improving timelines, and ensuring design and construction quality.

Additionally, it will highlight how such a model contributes to long-term value creation through sustainable practices, stronger brand identity, and enhanced client satisfaction, while positioning vertical integration as a uniquely effective framework for the future of real estate development.

1.0

1.1. Introducing Sobha Realty: A Fully Integrated Model in Action

Sobha Realty offers a rare and proven model of backward and forward integration in real estate development. Founded in 1976 by P.N.C. Menon, it has grown from a specialist interior contractor for royal clientele in the Gulf to a multi-national, multi-product real-estate powerhouse, with operations in the United Arab Emirates, India, and the United Kingdom.

Unlike traditional developers, Sobha Realty has built a vertically integrated ecosystem, housing all critical functions within its own group of companies. These range from architecture and construction (via PNC Architects and Sobha Constructions) to manufacturing (including furniture, façades, modular elements and prefabricated bathroom units (PBUs)), project delivery, and even post-handover services such as community management and hospitality. This allows Sobha to operate with complete autonomy, quality control, and speed across every project it undertakes.

Today, Sobha Realty is recognized as the world’s only fully backward-integrated real-estate developer, holding a 10% market share in Dubai and delivering some of

the city’s most ambitious and complex residential projects with precision, consistency, and scale.

1.2. Sobha’s Integrated Delivery Model: Structure and Execution

1.2.1. Defining Backward and Forward Integration in Real Estate

In business, backward integration refers to a company’s control over its supply chain, owning or managing the production of raw materials, components, and intermediate services that feed into its core product.

Forward integration, meanwhile, refers to extending control into post-production activities such as distribution, maintenance, and customer service. In real estate, these concepts translate into an ambitious operational model: one where every phase of development from design ideation to post-handover community management is executed in-house. While many developers outsource large portions of project delivery, Sobha has internalized each link of the value chain, creating a closed-loop system of quality, accountability, and innovation (see Figure 1).

Above: Sobha achieves a Guinness World Record title for the “largest helmet mosaic formed by people.” Each participant, wearing a helmet, played a significant role in creating an elaborate mosaic representing the vibrant colours and symbolism of the UAE flag.

1.2.2. Organizational Architecture of Integration

Sobha’s integrated model is supported by a group of specialized verticals that together form a self-sufficient real estate ecosystem. Each vertical operates as an internal specialist with cross-functional coordination, ensuring a seamless flow of execution without the inefficiencies of external contracting (see Figure 2). These verticals include:

A. Core Development and Construction

n PNC Investments LLC. Serving as the financial and strategic core of the group, PNC Investments oversees long-term planning, capital allocation, and international expansion.

n Sobha LLC. The flagship development entity responsible for all real estate ventures in Dubai and beyond, managing end-to-end development including land acquisition, feasibility, and execution.

n PNC Architects. PNC Architects (PNCA), Sobha’s in-house design firm, specializes in architectural

design, master planning, landscaping, façade design, engineering, bathroom pod modular design also known as Prefabricated Bathroom Units (PBUs), infrastructure development, structural and interior design, ensuring seamless integration from concept to execution.

n Sobha Constructions LLC. The primary construction execution company, with teams specialized in highrise, mid-rise, and community-scale development. Sobha Constructions upholds the group’s promise of timely, defect-free delivery.

B. Manufacturing and Specialized Production

n Sobha Modular LLC. Operates a cutting-edge Modular factory, manufacturing Prefabricated Bathroom Units (PBUs), ensuring precision, standardization, and reduced site disruption.

By prefabricating components in controlled environments, this division enhances efficiency, reduces waste, and ensures superior quality, setting a new standard in modern real estate development.

Figure 1. Closed-loop system of Sobha’s Integration model vs typical real estate company integration (fragmentation).

Part of the Mission 70–70 Initiative (see Section 3.2 for full details on Mission 70–70), this is aimed at moving 70% of the work off-site and to automate 70% of the off-site work.

n Sobha Façades LLC. Designs and fabricates advanced glass and aluminum facade systems that meet high-performance and aesthetic criteria.

n Sobha Furniture Industries. A vertically integrated interiors division producing custom-made furniture, joinery, and fit-outs with exacting quality control.

C. Post-Delivery, Community and Lifestyle Services

n Sobha Community Management LLC. Manages day-to-day operations of handed-over communities, ensuring long-term satisfaction, safety, and asset value for residents.

n Latinem Facilities Management LLC. Provides preventive and reactive maintenance services across Sobha projects, to ensure building performance and sustainability.

n Stay by Latinem. Offers short-term luxury rentals in Sobha-developed communities, integrating hospitality services into residential environments.

D. Landscape and Security Operations

n Latinem Landscaping LLC. Designs, installs, and maintains all green areas, from private gardens to expansive community, parks reinforcing Sobha’s biophilic and placemaking strategies.

n Latinem Securities. Offers trained personnel and security technology to protect Sobha’s properties, communities, and stakeholders.

S OBHA GROUP INTEGRA TED VERTIC AL S

Figure 2. Organizational architecture of integration.

END-TO-END CONTROL

BACKWARD FORWARD

1.2.3. End-to-End Control for Superior Outcomes

What distinguishes Sobha’s model is not just ownership of the verticals, but the interconnectivity and orchestration between them. This integration yields multiple strategic advantages (see Figure 3):

n Quality Consistency: In-house teams ensure uniform quality benchmarks from initial design to final delivery.

n Speed to Market: By avoiding delays associated with external procurement and subcontractor coordination, project timelines are optimized.

n Cost Efficiency: Economies of scale, direct sourcing, and centralized decision-making enable competitive pricing and value engineering.

n Design Fidelity: The original architectural intent is protected throughout the construction process due to cross-functional collaboration.

n Customer Experience: Post-handover services are seamlessly integrated, preserving brand integrity and delivering long-term satisfaction.

1.2.4. Sobha’s Growth Trajectory: Market Leadership Backed by Performance and Culture

The results speak for themselves. Between 2018 and 2024, Sobha’s sales grew exponentially from US$122 million to US$6.3 billion. The total sales value for 2024 alone reached US$6.3 billion, placing Sobha second in overall sales value across the UAE—a reflection of its sustained trajectory of excellence, strategic foresight, and growing global relevance (see

Figure 3. Integration yields multiple strategic advantages at Sobha.

figures 4 and 5 for total sales and 2024 annual sales across the UAE).1

With a stronghold in Dubai, one of the world’s most competitive real estate markets, Sobha now holds a 10% market share, is ranked among the top five developers in the city and has been featured as a Harvard Business School case study.2 Simultaneously, the brand continues to lead in India, being recognized as the No.1 developer for six consecutive years.3

The company’s internal culture has matched this external growth. Sobha Realty has consistently ranked among the Top 10 Best Workplaces in the UAE,4 with special accolades for its leadership in diversity, Millennial engagement, and women empowerment, underscoring a deeply rooted commitment to organizational excellence alongside product excellence (see Figure 6).

1.2.5. Scalability and Global Relevance

While deeply rooted in Dubai, Sobha’s model is scalable and exportable. The group’s structured expansion into India, the United Kingdom, and

Figure 4. Sobha’s exponential sales growth, from US$122 million to US$6.3 billion in 2024.
Figure 5. Sobha’s total sales value of US$6.3 billion, placing Sobha second in overall sales value across the UAE. Source: DXB Interact. Disclaimer: Competitor sales figures are based on publicly available information from DXB Interact. Sobha does not verify the accuracy of third-party data.

recently in Texas and Australia are grounded in replicating the same integrated framework adapted to local market conditions.

For global cities grappling with the challenge of delivering high-density, carbon-conscious, and community-friendly developments, Sobha’s approach offers a working blueprint (see Figure 7) 5

1995

The Sultan of Oman grants Menon Omani citizenship

ts up Sobha Limited (India)

2012

Sets up PNC Investments Dubai

2014

2023

Launches Sobha Hartland 2, spread across the site of 8.6 million ft2 (799,000 m2).

The Rise and Rise of PNC Menon and the Sobha Group

1984

Establishes his firm STC as one of Oman’s premier interior decoration firms.

2006

Sobha Limited goes public, launches an IPO worth 64 million USD. Oversubscribed 126 times.

2013

Partners with Meydan Group to set up District One, a luxury residential estate in MBR City in Dubai

2022

Launches The S, a flagship luxury tower on Sheikh Zayed Road

2025

Expected launch into the Mumbai real estate sector 2026

Expected to launch operations in Texas and Australia.

Announces Sobha Ha land 1.
Figure 7. Timeline and scalability for P.N.C. Menon & Sobha Group.
Figure 6. Sobha was cited as among the Top 10 Best Workplaces in the UAE by Great Place to Work UAE (GPTW).

2.1. Quality and Technology in Construction: Sobha’s Integrated Model for Performance, Precision, and Progress

2.1.1. Introduction

As the demand for high-performance, sustainable, and resilient buildings intensifies globally, quality in construction must evolve beyond inspection, it must be embedded into the core of project delivery. Sobha adopts this approach through a vertically integrated model that combines structured quality assurance with continuous technological advancement. The in-house Quality and Technology Department coordinates across design, site supervision, digital platforms, and execution to establish a standardized, scalable framework.

At the core of this model is a Triple Quality Control System, supported by both backward and forward integration. The objective is not only to ensure project success but also to contribute to broader discussions around quality benchmarks in fast-paced urban development.6

2.1.2. Vertical Integration: A Closed Feedback Loop

Sobha’s vertically integrated structure supports an uninterrupted quality feedback loop from concept through delivery:

n Backward integration enables control over critical inputs such as design, materials, and construction methodologies, helping to reduce variability and maintain consistent quality standards.

n Forward integration extends oversight beyond handover through live site tracking, internal certification processes, and performance validation.

This end-to-end visibility enhances risk mitigation, streamlines decision-making, and supports alignment with both regulatory and client performance expectations.

2.1.3. Triple Quality Control System: Layered Oversight and Responsibility

Sobha’s quality strategy is defined by three distinct but interrelated layers of accountability:

Above: The Crest, Nad Al Sheba 1—Dubai

1. Site-Level Execution Oversight. A team of experienced Turkish foremen and quality controllers oversee daily site implementation. Reporting directly to senior leadership, they are empowered to identify and address deviations in real time, ensuring adherence to approved specifications and standards.

2. Integrated Design Supervision. Unlike conventional models, Sobha’s design consultancy maintains an active on-site role throughout execution. This ensures that design intent is accurately translated into built form and that all regulatory requirements are continuously monitored and met.

3. Quality Audits by Senior German Master Craftsmen and Team. An internal audit team, trained in German construction standards and reporting directly to The Chairman of the Company, conducts unannounced quality reviews, supports on-site training, and holds authority to halt or reject non-compliant work. This layer introduces external craftsmanship benchmarks into a high-quality development context.

2.1.4. Digital Transformation: Enhancing Consistency and Speed

Technology is integrated, not as an afterthought but as a foundational component of quality control. Since 2014, digital construction productivity tools have supported improved sequencing, traceability, and task execution across active sites.

More recently, Sobha has implemented the CAP^Q System (Construction Activity Planning & Quality) (see Figure 8), a centralized process guideline, designed to achieve Sobha’s quality goals by:7

n Standardizing task planning and quality checkpoints

n Structuring supervision around approved sequences of work

n Allowing for adaptable implementation across varied project conditions

n Embedding real-time quality validation within accelerated delivery models

The CAP^Q process is a systematic and purpose-built methodology that combines in-house supervision with integrated IT systems to ensure consistent, verifiable, and deviation-free delivery, without compromising on speed.

This digital system supports the company’s internal principle of “every square-inch supervision,” combining speed and precision at scale.

2.1.5. Institutional Framework for Quality

Sobha’s model follows a five-step framework for ensuring quality across all project phases:

1. Codification of Processes—Standard workflows, checklists, and structured systems applied across multiple sites.

2. Integration of R&D—Technical refinements are continuously fed into project detailing and design development.

3. Cross-Project Learning—Lessons learned from individual sites inform updates to organizational standards.

4. Real-Time Monitoring—Digital platforms enable active supervision and immediate feedback.

5. Pre-Handover Certification—Each unit or phase of the project undergoes internal validation before client possession.

Figure 8. CAP^Q venn diagram—quality and technology.

2.1.6. Case Example: 1,000+ Handovers at Sobha Crest

The delivery of over 1,000 residential units within just 31 days at Sobha Crest serves as a compelling validation of Sobha’s integrated quality and technology framework. The disciplined application of the in-house CAP^Q (Construction Activity Planning & Quality) process, integrated with the Triple Quality Control System and advanced construction productivity software, enabled first-time-right execution across the board.

Every client- and third-party-inspected unit was accepted during its initial inspection, requiring no remedial work, an outcome that set a new delivery benchmark for the organization. This performance was enabled by the closure of over 600,000 CAP^Q tasks throughout the Crest development, each digitally tracked, evidencebased, and verified through multiple inspection tiers. These inspections spanned 10 critical clusters, including substructure, superstructure, internal and external

finishes, materials, façade systems, modular building units, and operational interfaces (see Figure 9).

The backward integration of key verticals, such as concrete production, façade manufacturing, joinery, and MEP components, ensured consistent quality inputs and seamless coordination across these inspection points. By controlling both the supply chain and execution process in-house, the team was able to enforce a uniform quality benchmark from material sourcing to on-site assembly, eliminating typical fragmentation and rework.

Rather than treating quality assurance as a separate task, the project embedded it within daily workflows: through rigorous field-level documentation, real-time task closures, and proactive oversight from trained in-house experts. These measures ensured not just operational compliance but client-facing excellence during the CRM Home Orientation and Handover phase (see figures 10 and 11).

qualit yf ormula
Figure 9. CAP^Q cluster level parts for inspection—quality and technology.

More than an isolated success, the Crest case exemplifies how vertically integrated frameworks— when paired with internal tools, workforce training, and digital systems—can produce consistent, measurable outcomes at scale. It also demonstrates that speed and quality are not opposing forces but complementary results of disciplined, process-aligned execution.

2.1.7. Conclusion

Sobha’s model redefines the relationship between quality and speed. Rather than being in conflict, these outcomes emerge through the deliberate alignment of people, processes, and technology, each reinforced by internal systems such as CAP^Q, structured training, digital tools, and ongoing audits.

The Crest example demonstrates how a proactive, multi-layered quality assurance framework can support accelerated delivery while maintaining consistently high performance and occupant satisfaction.

This integrated approach reflects broader priorities in tall building and urban development: embedding

quality as a measurable, auditable, and data-driven discipline. It offers a replicable framework for delivering excellence in large-scale projects, particularly in contexts where delivery timelines, technical complexity, and user expectations intersect.

2.2 Construction Speed

2.2.1. Introduction: The Strategic Imperative of Construction Speed in Urban Development

Construction speed, the rate at which a project advances  over a defined period, is a key metric in modern development, directly influencing cost efficiency, resource optimization, early revenue realization, and overall project success. In a highly competitive market like Dubai, construction speed is not just a measure of performance, but a strategic differentiator.

Each day spent on-site incurs overheads, resource costs (materials, labor, equipment), and operational risks. Conversely, every day saved translates into tangible cost reductions and faster time-to-market.

Figure 10. Quality checks for the Crest Project.
Figure 11. Team achieves 100% deficiencyfree CRM home orientations for the Crest.

The critical question is: how can developers accelerate delivery without compromising on quality, safety, or compliance?

At Sobha, the answer lies in its backward and forward integration model. This framework enables rapid mobilization, streamlined approvals, reduced interagency coordination delays, and enhanced control over the full project lifecycle.

Backward integration secures essential inputs and processes, such as in-house design, material production, and contracting, thereby reducing supply chain friction and coordination delays. Forward integration, on the other hand, ensures downstream continuity, encompassing quality handovers, facilities management, and lifecycle-ready delivery.

Sobha Construction Vision is realized through this integrated approach, which enables the company to consistently outperform industry timelines through:

n Guaranteed material supply

n Faster and decentralized decision-making

n Predictable cost and time performance

n Design flexibility within controlled systems

n Reduced external dependency risks

2.2.2. How Backward and Forward Integration Impacts Project Timelines

To understand how Sobha compares with the wider industry, a benchmark analysis was conducted in 2023. Data was sourced from the Dubai Government portal for all residential projects completed between January

2020 and May 2023.8 After cleaning the dataset to remove anomalies and outliers, comparative filtering was done based on tower height and floor count, particularly in the 27–38-level (floors) range, which matches Sobha’s recent project profile.

Key Insights from the Analysis:

n 25–30-level projects: Sobha ranked first in delivery speed.

n 31–35-level projects: Sobha ranked second.

n 36–40-level projects: Sobha again ranked first.

This data illustrates that Sobha not only competes at scale but also sets the pace within key vertical development categories.

Internal Performance Benchmark

Among all internal projects completed by 2023, Sobha Waves stood out as the fastest-delivered tower (see Figure 12). It now functions as a performance baseline for other entities within the group, serving as a benchmark for setting internal delivery goals.

Key Enablers of Construction Speed at Sobha

1. Single-Client Model with Internal Ecosystem. All entities, including design (PNCA) and infrastructure (Sobha Constructions), PBU Factory (Sobha Modular), Furniture Factory (Sobha Furniture), MEP Modular (Sobha Advanced Industries) etc work for a single client: Sobha Realty. This ensures seamless alignment on schedules and scopes, minimizing the risk of inter-party misalignments and delays.

2023, 98%
Sobha Waves 2023
Figure 12. Internal performance benchmarks, seven Sobha projects, 2018–2023.

2. Elimination of Internal Tendering Cycles. No RFPs or contract negotiations are needed between internal stakeholders. This saves 3–6 months in pre-construction phases, a significant time gain when compared to conventional delivery models.

3. Early Site Enablement. Internal infrastructure teams manage roads, utilities, and drainage, allowing site works to commence rapidly and in parallel with other preparatory activities.

4. Fast-Tracked Decision-Making through Internal Integration. With interlinked upstream and downstream workflows, decision-making related to material availability, design modifications, and construction sequencing is significantly accelerated. This is enabled by real-time coordination between internal entities, reducing delays common in fragmented project models. For example, Issued-for-Construction (IFC) drawings are released to Sobha Constructions in advance, as both design (PNCA) and execution teams operate within the same integrated ecosystem. This early access allows synchronized planning of manpower, equipment, and material delivery, ensuring that site execution progresses without bottlenecks.

5. Accelerated Variation Approvals. Internal digital workflows enable rapid design change approvals, cutting down response times from weeks to days.

6. First-Time-Right Execution and Seamless Handover. In-house quality assurance and facilities management team (Latinem Facilities Management team) integration minimizes rework, reduces punch lists, and enables operational readiness on delivery.

7. Organizational Learning and Knowledge Transfer. Best practices in constructability, sequencing, and design detailing are documented and transferred across Sobha entities, ensuring continuous improvement and predictability throughout all stages from design, construction delivery and handover.

2.2.3. Challenges in Construction Speed and Strategies Implemented

While Sobha has demonstrated exceptional delivery timelines, the construction industry at large

continues to face several structural barriers that hinder acceleration. Many of these are global in nature, including workforce productivity, complex sequencing, fragmented supply chains, and likewise require both systemic and organizational responses. Below are two critical challenges and the integrated strategies Sobha has implemented to overcome them.

2.2.4.

Challenge: Workforce Productivity and Skill Levels

Construction productivity globally has seen only a modest rise of 10% between 2000 and 2022 (0.4% per year), compared to 50% in manufacturing and 90% in the broader economy. Labor productivity, measured as economic value added per hour worked, remains flat across many markets (see Figure 13).9

Sobha’s Response: Establishment of Sobha Institute of Construction Excellence (SICE)

Recognizing the limitations of relying solely on external labor markets, Sobha invested in a proprietary skill development institute, SICE—with the goal of transforming workforce productivity through hands-on training, multiskilling, and continuous upskilling (see Figure 14).

Key Components of the SICE Training Model:

n Induction Training: Sobha philosophy, safety, and innovation programs (e.g., Sobha Ideas)11

n Fundamental Skills Training: Trade theory, tools, elemental skills (e.g., hand-eye coordination)

n Hands-On Training: Blockwork, tiling, MEP, façade systems, joinery etc.

n On-the-Job Training and Certification: Final field deployment only after a post-performance assessment in the field. The technicians are

“Construction productivity has lagged all major industries. Upskilling is no longer optional.”

10

Labor productivity in construction continues to lag behind productivity in manufacturing and the total economy

Real gross value added per hour worked (global),* 2000–22 (index: 2000 = 100)

*Includes 42 countries with su cient data availability; they account for >90% pf 2022 construction value added.

Source: McKinsey analysis based on sources from IHS Markit, the International Labour Organization, OECD, the UN, and local statistical

no longer optional,” August 2024.

TRAINING STAGES

Technician Training consists of 04 stages star ting from the Date of Joining

ces

Training On the Job Training (OJT)

evaluated on two parameters—Productivity & Quality. These technicians are then graded based on criteria for Skill grade, using the score obtained in assessment as AAA+, AAA, AA, A and Beginner(B).

n Retraining: The technicians undergo periodic reassessment and grading at site and low productivity technicians in need of productivity improvement are taken to SICE for retraining.

Measured Outcomes:

n Initial studies showed technicians were achieving only 30% of target productivity.

n Post-SICE training, ~80% of technicians achieved >80% of target productivity.

n On-site evaluations post-deployment are continuous, with retraining cycles built in.

By owning and operating the entire workforce development process through SICE, Sobha leverages backward integration to control upstream inputs, skilled labor, training methodologies, and operational standards and forward integration to ensure downstream execution aligns seamlessly with project schedules and quality expectations.

Figure 13. Labor productivity in construction, lagging productivity in manufacturing and economy. SOURCE. McKinsey & Company, “Delivering on construction productivity is
Figure 14. Key components of the SICE Training Model.

2.2.5. Challenge: Sequential Dependencies in Construction Activities

Traditional construction schedules follow highly sequential workflows, where each trade or task is dependent on the prior step. This accumulation of risk along the critical path slows down project velocity and leads to inefficient resource utilization.

Mission 70–70 is a manifestation of Sobha’s backward and forward integration model. The ability to shift construction activities off-site, automate processes, and ensure seamless site delivery is made possible by controlling upstream design and manufacturing, and downstream operational transitions, all within the Sobha ecosystem.

Sobha’s Response: Mission 70–70

Mission 70–70 is a transformative program aimed at industrializing construction through off-site execution and automation.

70–70 Core Objectives

n 70% Off-site Execution: Shift repetitive construction tasks to factory-controlled environments.

n 70% Automation of Off-site Activities: Apply robotics, digital fabrication, and smart assembly to eliminate inefficiencies.

Strategic Pillars of Mission 70–70

A. Modularization of Building Components

Prefabricated components (PBUs, MEP systems, gypsum units) are manufactured off-site and assembled onsite, enabling parallel workstreams and schedule compression.

B. Integrated Design & Engineering (DfMA)

Designs are frozen early to allow for precision manufacturing. DfMA (Design for Manufacturing and Assembly) principles minimize rework and allow just-in-time coordination.

C. Automated Fabrication

Advanced technologies like robotic welding, CNC cutting, and modular casting improve consistency, reduce errors, and enhance production speed.

D. Just-in-Time Logistics

Prefabricated components are delivered exactly when required, eliminating on-site clutter and minimizing delays from material handling.

E. Workforce Transformation

Transition from general labor to a smaller, multiskilled technical workforce, capable of managing and operating factory systems and machinery.

Benefits Beyond Speed

While speed is a defining advantage, Mission 70-70 delivers a wide spectrum of strategic benefits:

n Enhanced Quality Control: Our unique selling point for our building projects is high quality. Hence, controlled factory environments allow for stringent quality checks, ensuring uniformity and further reducing defects.

n Waste Reduction: Off-site manufacturing minimizes material waste and energy usage, supporting sustainability goals.

n Improved Safety: By reducing the number of highrisk activities performed on-site, worker safety is significantly enhanced.

n Cost Predictability: With standardized production and minimized site rework, budget adherence becomes more accurate.

n Scalability: Modular construction and automation enable rapid scale-up for large projects, enabling developers to respond to market demand faster.

This integrated approach enables quicker decisionmaking, standardized processes across projects, and parallelization of design and construction activities. Additionally, it allows work to be shifted off-site into controlled environments, facilitates the use of automation and robotics for consistency, and supports real-time feedback loops where lessons learned inform subsequent projects.

In contrast, non-integrated models, where contractors, design teams, and fabrication units operate independently, cannot achieve this level of predictability, efficiency, or productivity enhancement.

2.2.6. Case Example—Crest Project: Leveraging Precast and Modular Construction for Speed and Efficiency

The Crest is a monumental off-site construction project located at Sobha Hartland, Nad Al Sheba, covering a massive built-up area of 2.5 million sq ft (232,257 m2). The project consists of four interconnected towers, Tower A (49 floors), Tower B (41 floors), Tower C (36 floors), and Tower D (10 floors).

Off-Site Construction

Off-site construction was a cornerstone in ensuring the project’s efficient completion, reducing reliance on skilled labor, and delivering superior quality finishes.

Various initiatives such as implementation of prefabricated bathroom units—manufactured in Sobha’s POD Factory, MEP modular units, Gypsum prefabricated units and pre-packed cut tiles from Sobha’s Tile Craft Center were used in the Crest project, which meant ~30% was built off-site.

n Prefabricated Bathroom Units PBUs: Manufactured off-site at Sobha’s dedicated factory, Sobha Modular Factory, these bathroom units were a key feature in reducing onsite labor and expediting installation.

n MEP Off-Site Systems: These systems were prefabricated off-site, significantly reducing the onsite installation time and minimizing clashes between various trades.

n Gypsum Prefabrication: Ensured drywall installations were done efficiently, speeding up the overall interior construction phase.

n Tile Precut & Kitting Services: Utilized precut tiles to streamline flooring installation and minimize construction waste, contributing to higher resource efficiency and quality control.

This helped the project to overall:

n Minimize on-site tasks to lessen reliance on skilled labor and investigate alternatives such as a ready-toinstall approach.

n Reduce the need for highly skilled workers while boosting productivity and minimizing waste on-site.

By assembling components off-site, it streamlines construction, requiring fewer adjustments and reducing material waste. Surplus materials can be repurposed, contributing to resource efficiency.

The early adoption of extensive R&D allowed Sobha to identify the best prefabrication techniques, particularly for MEP systems and PBUs. Additionally, structured logistics planning and careful management of transportation and installation schedules mitigate potential delays. The project team worked in close collaboration with manufacturers and suppliers to ensure that all components were delivered and installed without interruption.

Proactive planning and pre-approved PBU designs, enabled streamlined execution. The architectural design is finalized six months in advance, ensuring a design freeze well before production begins. This allows for PBU manufacturing to progress ahead of core structural works, guaranteeing just-in-time delivery to the site. The result is a synchronized workflow where dedicated teams and specialized entities collaborate seamlessly, reducing project timelines, optimizing resources, and enhancing overall construction efficiency.

2.2.7. Conclusion: Workforce Productivity and Off-Site Modular Efficiency

The Crest Project illustrates the effect of workforce training and off-site prefabrication on construction timelines and efficiency. Technicians trained through SICE in trades such as blockwork, tiling, and MEP systems underwent structured exercises, hands-on training, and on-the-job assessments, resulting in an observed productivity increase of approximately 25% six months after deployment.

Off-site prefabrication, including Prefabricated Bathroom Units (PBUs), MEP systems, gypsum units, and pre-cut tiles, contributed to a reduction in production time. Fully assembled PBUs, which conventionally require 50–60 days, were completed in approximately 15 days through automated manufacturing processes, accompanied by an estimated 43% reduction in labor costs per apartment. (further elaborated in section 3.2.8)

These outcomes demonstrate how backward integration (in-house workforce development and controlled manufacturing) and forward integration (coordinated on-site assembly and logistics) can facilitate synchronized

workflows, improved resource utilization, and more predictable construction timelines. The Crest Project provides a case example of how integration across design,

2.3 Launch Speed: Siniya Island Project

The Siniya Island Project exemplifies how an integrated design and delivery framework can dramatically accelerate development timelines. In contexts where conventional project workflows often face delays due to fragmented coordination, the Siniya Island initiative demonstrated the ability to move from concept to market-ready apartment designs within a matter of weeks (see figures 15 and 16).

A key factor enabling this rapid launch was the organizational structure of PNCA and its integration with the client, Sobha Realty. Design disciplines, including structural engineering, MEP, interior design, and landscape architecture, were co-located on-site, allowing for direct, real-time interaction. This physical and operational proximity between disciplines facilitated immediate collaboration, bypassing many of the inefficiencies associated with externally coordinated consultant models. As a result, design iterations occurred in parallel rather than sequentially, significantly compressing the project timeline.

The project also benefited from the on-site presence of the client’s development leadership. Traditional development cycles are often extended by protracted feedback loops and formal approvals; however, the Siniya Island team was able to resolve key design decisions within hours due to direct engagement with client stakeholders. This

production, and execution can influence project delivery efficiency without altering project quality standards.

proximity removed delays typically caused by inter-organizational silos and hierarchical communication structures.

Standardization further contributed to speed. Prefabricated Bathroom Units (PBUs), previously designed and approved by PNCA’s modular and interior teams, were readily deployable without extensive redesign. The availability of a pre-validated design library enabled a “plug-and-play” approach, allowing for immediate alignment with project specifications and eliminating the time and risk associated with bespoke solutions.

In addition to core design and engineering functions, PNCA’s in-house visualization and marketing teams played a critical role. Highresolution colored plans, 3D renderings, and presentation assets were generated internally, streamlining collateral production and supporting an accelerated go-to-market strategy. This avoided dependence on thirdparty service providers, reducing both turnaround time and coordination complexity.

The Siniya Island Project underscores how backward and forward integration within a single design-development ecosystem can serve as a catalyst for speed. The ability to collapse traditional barriers between teams and processes created a level of responsiveness that is difficult to achieve in conventional development models, enabling the project to meet ambitious launch timelines with agility and precision.

Figure 15. Project Siniya Island—Aerial View, Umm Al Quwain, UAE
Figure 16. Mixed-Use Retail and Residential Waterfront, Siniya Island Project, Umm Al Quwain, UAE.

2.4 Sustainability

2.4.1.

Embedding Sustainability in the Development Lifecycle

In real estate, the translation of sustainability goals from concept to execution often faces systemic challenges due to fragmented delivery systems. Sobha’s integrated delivery model, characterized by in-house coordination from design through operations, offers an alternate approach. By consolidating core functions under a single organizational umbrella, sustainability objectives can be embedded from the earliest planning stages through to long-term operations, increasing the likelihood of achieving measurable outcomes.

2.4.2. Structuring for Integrated Sustainability Delivery

A vertically integrated approach enables alignment across functions typically divided among independent stakeholders. Within this model are:

1. Cross-Functional Alignment: Design, engineering, construction, and facilities management operate as interdependent units. This integration facilitates continuity in sustainability performance, material specification, and lifecycle goals.

2. Upfront Sustainability Targeting: Project teams define performance benchmarks, such as energy intensity, operational resilience, and user health metrics at concept stage, with input from construction and FM entities to ensure feasibility and long-term maintainability.

3. Digital Coordination Tools: Integration of BIM (Building Information Technology), building performance simulation, and CDE (Common Data Environment) platforms facilitates coordination between design intent and on-site execution. Early design finalization further supports modular construction readiness.

4. Controlled Material Production: In-house factories (e.g., Sobha Modular) allow selection and standardization of sustainable materials, while minimizing off-cut waste and transport emissions.

5. FM Involvement During Design: Including facilities management (FM) teams during early phases enhances decision-making around maintainability and long-term operational costs, reducing retrofit needs.

6. Feedback Loops Across Functions: Ongoing review cycles and data sharing across internal entities contribute to iterative learning and standardization of sustainability practices.

2.4.3. Case Application: Sobha One and Green Mark SLE Certification

Sobha One was developed as a testbed for applying sustainability principles across the entire development lifecycle. The project pursued and achieved Green Mark Platinum Super Low Energy (SLE) certification under the Building and Construction Authority (BCA) of Singapore’s 2021 framework.

Green Mark was selected following a multi-criteria evaluation of global sustainability certification systems, which considered:

n Relevance to climatic and regulatory conditions in the United Arab Emirates

n Feasibility of compliance in a high-rise, high-density context

n Emphasis on energy, water, health, intelligence, and resilience metrics

n Total cost of certification and third-party consultancy

n Lifecycle practicality of adherence

The Green Mark 2021 framework assesses developments across five pillars: Resilience, Whole Life Carbon, Health & Well-Being, Intelligence, and Maintainability. Sobha One’s performance met or exceeded benchmarks across each, notably achieving over 60% energy savings relative to the 2005 baseline.

The development also received the Green Mark “Whole Life Carbon” badge, reflecting embodied carbon assessment and mitigation throughout design, procurement, construction, and operation.

2.4.4. Technology Integration to Support Operational Sustainability

In addition to high-performance design, operational efficiency was supported through the implementation of smart building systems, including:

n CAFM and CDE Integration:12 Used for real-time asset tracking, predictive maintenance, and energy consumption analytics.

n Digital Twins: Applied to support commissioning and performance testing scenarios pre-occupancy.

n Post-Occupancy Evaluation (POE): Conducted internally with feedback loops to design and construction teams.

These systems collectively contribute to long-term reductions in operational emissions and improve asset performance tracking, linking sustainability goals with actual performance over time.

2.4.5.

Considerations in Certification Strategy

The selection of Green Mark was project-specific and reflects a broader recognition that sustainability certification frameworks must be contextually evaluated. While tools such as LEED, Estidama, or WELL offer valuable benchmarks, their applicability varies based on local conditions, typology, and developer objectives.

This decision-making process underscores the value of internal integration: multi-criteria assessments can be jointly developed and evaluated by internal teams to ensure both technical feasibility and alignment with project goals.

2.4.6. Broader Impacts and Market Implications

Projects delivered through integrated systems that prioritize sustainability demonstrate resilience in both environmental and market dimensions. Observed outcomes include:

n Higher construction quality and fewer defects due to tight coupling between design and execution.

n Reduced lifecycle costs, especially in energy, maintenance, and retrofit risk.

n Improved regulatory alignment, particularly as regional codes evolve toward net-zero and lifecyclebased performance assessments.

n Greater investor confidence, as forward-looking risk metrics, such as stranded asset potential, become more prevalent in ESG frameworks.

2.4.7. Summary Insight

Sobha One illustrates how vertically integrated real estate delivery can enhance sustainability beyond minimum code compliance. By embedding sustainability into the core operating model, rather than as a post-design layer, developers can better meet performance goals and respond to tightening regulations, shifting user expectations, and climate-related risks. The result is a more resilient, efficient, and future-ready built environment.

2.5. Customer Relationship Management (CRM)

2.5.1.

Customer Feedback as a Driver of Integration: CRM’s Role at Sobha

In a backward-integrated organization like Sobha, where operations from design to delivery are controlled in-house, the key to forward integration lies in how well customer feedback is embedded into internal systems. The CRM function plays a pivotal role here, not just in resolving queries, but in translating them into actionable insight for systemic correction. The Customer Excellence Ambassador (CEA) program, Voice of Customer tracking, survey frameworks, and proactive customer engagement efforts together form a structured ecosystem where every complaint or call can drive enterprise-wide improvement.

Recent interventions highlight how this loop operates in practice:

n Design and Planning Adjustments: Isolated feedback related to area discrepancies post-booking led to systemic intervention. CRM escalated the issue to the development team, which resulted in a revised

internal protocol—mandating earlier communication on design changes and stricter controls on interdepartmental coordination to minimize post-SPA modifications.

n Programmatic Experience Design: Qualitative feedback from high-value customers pointed to the need for a more personalized service model. This insight contributed to the development of the Elite Customer Experience Program, currently under design, which aims to assign a single-point relationship manager to support customers through key milestones from booking to handover.

n Digital Enablement Based on Usage Friction: Several customers reported difficulty in raising and tracking service requests, which previously required email or call follow-ups. In response, CRM facilitated the launch of a Service Request module within the One Sobha App. The tool now enables customers to digitally log, categorize, and track service issues in real time, improving transparency and reducing response lags.

n Cross-Functional Process Innovation: Though outside CRM’s formal scope, customer dissatisfaction with delayed or inaccurate Statements of Account (SOA) was flagged through incoming queries. CRM coordinated with multiple internal departments to trace root causes and led the development of a Robotic Process Automation (RPA) solution to identify and flag inconsistencies across systems. This solution currently being scaled and aims to reduce delays, improve data integrity, and address a critical customer concern with long-term implications for trust and operational efficiency.

These examples demonstrate CRM’s evolving role as an enabler of organizational responsiveness. By converting individual experiences into structured feedback and integrating these insights across planning, digital development, and operational processes, CRM supports forward integration by systematically embedding customer feedback into both service delivery and system design processes.

2.5.2. From Listening to Learning: The Framework

Launched as a cross-functional initiative, Sobha’s Customer Excellence Ambassador Program includes

over 20 internal ambassadors across 15+ departments, including CRM, Registration, Legal, Development, Community Management, and Audit, with CRM acting as a primary signal carrier. CEAs meet fortnightly to surface recurring patterns, propose root-cause resolutions, and agree on cross-functional follow-ups. These reviews are further escalated into the CustomerCentric Apex Steering Committee, creating a vertical loop from ground-level insights to executive action.

All CEA meeting minutes are documented in a centralized tracker. Each cross-functional owner is assigned a follow-up action with a timeline. The status of each item is reviewed in the next forum until closed, ensuring institutional memory and accountability.

The CEA structure gains power from the three key CRM mechanisms feeding it:

2.5.2.1 Voice of Customer: Daily Complaint Tracking

At the center of CRM’s contribution is a daily feedback tracking system—a unified log of customer complaints and queries from CRM, Sobha Community Management (SCM), and Customer Care Cell (CCC)13 and Sales. This tracker is sent daily to the Managing Director of Sobha and is reviewed for:

n Themes and frequency (e.g., number of Sales and Purchase Agreements, Post-Living Experiencerelated escalations, miss-sell communications, etc.)

n Stage mapping (pre-registration, handover, resale, post-living, etc.)

n Aging and action status (to detect bottlenecks)

This tool serves two purposes:

n Daily prioritization: ensuring that high-impact customer issues are acted upon immediately

n Pattern detection: highlighting issues that recur across projects or departments

Integration in Action: Examples from the Ground

These are not standalone fixes. Each becomes a reduction in recurrence, visible over time in trend charts and resolution aging curves.

Examples include:

n Repeated Sales Purchase Agreement (SPA) delay complaints from international customers seeking visa documentation led to a development-stage alert protocol.

n Customer Care Cell (CCC) inputs on handover-stage snags, such as recurring wall cracks or HVAC concerns were used to update readiness checklists.

n Sobha Community Management (SCM) inputs around pool timings and visitor flow resulted in revised communication protocols at the project level.

Standardizing Handover Through Cross-Functional Collaboration

During multiple handover journeys, recurring feedback pointed to inconsistencies in process clarity across teams. In response, CRM led a structured collaboration with five internal functions—Development, Community, CRM, CCC, and IT, to co-develop a standard operating procedure (SOP) Handover. This includes clearly defined steps for home orientation, document handover, and readiness verification. The SOP has now been jointly signed off and is being adopted across all projects.

To ensure process transparency and ease for customers, CRM also partnered with the internal IT team to digitize the experience through the One Sobha App. New features, related to the handover and scheduling were designed to offer customers full visibility and control over their handover timeline. This move reflects a shift from reactive issue management to digitally enabled forward integration, where design, delivery, and customer interaction are increasingly aligned.

2.5.2.2 Structured Surveys: NPS and CSAT

To move beyond reactive logging, CRM has partnered with an international consumer insights firm and Sobha’s marketing department to launch two structured survey programs:

n Net Promoter Score (NPS) is used as a tool to measure customer satisfaction and loyalty at different points in the customer journey. By analyzing results across stages, the CRM team

can identify where sentiment is lower and link feedback to the relevant internal functions for corrective action. This structured approach enables targeted improvements rather than broad, anecdotal responses.

n Customer Satisfaction (CSAT) surveys are triggered episodically—after SPA signing, home orientation, and handover etc. A low score is flagged internally as a Dissatisfaction (DSAT) case, routed for corrective action via a structured follow-up by the assigned CRM stakeholder.

Both NPS and CSAT are not just scorekeeping tools. They’re designed to loop directly into CEA forums, where they inform automation priorities, customer communication improvements, and standard operating procedure (SOP) realignments.

Closing the Loop

Customer Satisfaction in Practice

One month after the formal rollout of CSAT tracking, initial results indicate a measurable improvement in customer satisfaction levels. The baseline score, defined as the percentage of respondents marking their interaction as highly satisfactory, stood at 40%. This has since increased to 50%, indicating early traction and responsiveness to process improvements.

Several operational enablers have contributed to this outcome. Relationship Managers were trained to seek feedback at appropriate interaction points, improving both timing and relevance of survey responses. The adoption of real-time coordination with backend teams has reduced case transfers and enabled faster first-call resolution. In parallel, daily visibility through leaderboard-style reporting has created internal accountability, while DSAT (dissatisfaction) cases continue to be escalated for structured recovery via team-lead interventions.

These mechanisms illustrate how structured customer feedback, when integrated with real-time service resolution loops can reinforce internal alignment, elevate CRM maturity, and close the loop between service delivery and systemic responsiveness.

2.5.2.3. Proactive Customer Engagement as A Preventive Tool

In addition to managing inbound queries, CRM plays a central role in leading proactive customer engagement initiatives designed to prevent dissatisfaction before it arises. Two key mechanisms in this approach are:

n Welcome Calls: Conducted post-sale confirmation to align expectations, guide customers on next steps, and ensure clarity on payment schedules, documentation requirements, and handover timelines.

n Courtesy/Birthday Calls: These touchpoints help maintain a personalized relationship over the long construction lifecycle (typically 3–4 years), while also surfacing latent concerns that may otherwise go unreported.

On average, CRM conducts 100 welcome calls and 100 courtesy calls daily. These engagements have demonstrated effectiveness in detecting early indicators of potential dissatisfaction, such as sales miscommunication, unrecorded commitments (e.g. discounts or handover preferences), or misalignment between what was promised and what is being delivered.

These early interactions not only foster trust but also serve as informal audits to validate whether prior complaints have been addressed, thereby completing the feedback loop and reducing recurrence of issues across the customer journey.

2.5.3. Operationalizing Feedback: CRM as a System-Level Contributor

In Sobha’s vertically integrated delivery model, Customer Relationship Management (CRM) operates far beyond its traditional reactive function. It acts as an organizational intelligence hub, collecting, interpreting, and translating customer feedback into measurable system improvements.

Several initiatives illustrate this integration:

n Knowledge Management: Standardized email templates and operating procedures (SOPs) across departments have been redesigned based on customer complaint trends and recent Net Promoter

Score (NPS) findings, ensuring more consistent and efficient communication.

n Digital Enablement: CRM has led key digitization efforts, including the development of AI-powered customer explainers for commonly misunderstood stages, centralizing communication within Salesforce, and creating a digitized handover process that reduces ambiguity and improves transparency.

n Workflow Automation: Major customer journey touchpoints, from the signing of the Sales and Purchase Agreement (SPA) to title deed issuance, have been mapped within an integrated digital platform, with automated timestamps and built-in escalation mechanisms. This enables timely interventions and accountability across multistakeholder workflows.

n Capability Building: A Learning Management System (LMS) is being explored to support continuous upskilling of relationship managers, complemented by the automation of templated responses to standardize communication quality across customer interactions.

Working closely with the Business Excellence team, CRM is also helping define SOPs and escalation protocols for each stage of the customer lifecycle. These interventions contribute to establishing a turnaround time (TAT) driven approach, allowing Sobha to move toward service delivery models that are measurable, predictable, and repeatable.

2.5.4. Forward Integration: Embedding the Customer into Design Logic

While Sobha is widely recognized for its backward integration in design, engineering, and construction, CRM serves as a mechanism of forward integration by structurally embedding the customer voice into internal decision-making, digital infrastructure, and process design.

Rather than treating complaints as isolated incidents, CRM applies structured analysis to surface patterns that can be used to inform cross-functional improvements. These insights feed into design reviews, service policy refinement, and even future product development.

For instance:

n Feedback on post-sale confusion has informed more structured onboarding touchpoints and clearer documentation protocols.

n Customer expectations around home orientation and handover experience have shaped the design of digitized walkthroughs and white-glove concierge programs.

n CRM validation checks, such as proactive welcome calls and follow-up touchpoints have surfaced inconsistencies in early sales commitments (e.g., undocumented discounts or modified payment terms), enabling course correction before escalation.

This continuous loop, from customer insight to organizational learning, allows Sobha to anticipate issues before they occur, refine its service standards, and align internal teams around clearly defined accountability structures.

In essence, CRM becomes a critical conduit for experiential feedback to enter design logic. It operationalizes the voice of the customer across every process touchpoint, ensuring that the delivery experience evolves in tandem with the product. In doing so, it closes the loop on integration: from backward production alignment to forward-looking service design.

2.6. Community Management

2.6.1. Sobha Community Management — Strengthening the Sobha Brand Through Forward Integration

A key pillar of Sobha Realty’s ecosystem, Sobha Community Management (SCM) plays a pivotal role in shaping the design, development, and operational excellence of every Sobha community. Unlike traditional models where community management is introduced post-development, SCM is embedded in the process from inception, ensuring seamless integration that enhances both livability and long-term asset value.

SCM benefits from seamless collaboration with the developer, ensuring operational challenges are not only addressed but also proactively incorporated into future

projects. This synergy enhances efficiency, sustainability, and overall resident experience.

SCM, through backward and forward integration, not only ensures operational excellence but also strengthens brand value. Well-managed, high-quality communities create lasting positive impressions, leading to loyal customers who are more likely to reinvest in future Sobha projects or influence new sales through word-of-mouth referrals.

2.6.2. Optimized Design for Better Operations

SCM actively identifies design-related operational challenges and communicates them to the developer. Thanks to backward integration, these challenges are resolved efficiently and preemptively integrated into future developments.

Key Improvements Enabled by Backward and Forward Integration:

n Automatic Number Plate Recognition System (ANPR). Previously, community parking relied on remote-controlled access, leading to operational inefficiencies, security concerns, and high maintenance costs. By integrating ANPR, SCM has enhanced operational efficiency, reduced costs, and adopted a more sustainable solution. The same has also been incorporated into all future projects.

n Curated Retail Mix. Earlier, retail units were sold, limiting SCM’s ability to influence the variety and quality of outlets available to residents. Recognizing this challenge, the developer now retains ownership of retail spaces for upcoming projects, leasing them selectively to ensure a balanced and resident-centric retail mix.

n Dedicated Event Spaces. Community engagement is a cornerstone of SCM, with 19 successful events hosted in 2024 alone. However, existing spaces were not always suitable for large gatherings. Feedback was shared with the developer, who is now incorporating larger event spaces into future projects to enhance community engagement and living experience.

n ONE Sobha App. Developed in-house by Sobha IT, the ONE Sobha App integrates essential services across multiple departments, providing residents and

owners with a seamless, all-in-one digital experience. This proprietary approach ensures high app engagement and a well-rounded community living experience and maintain the master plan on ground.

2.6.3. Extended Support Beyond Defect Liability Period (DLP)

A unique advantage of Sobha’s forward integration is continued access to contractors and consultants even after the Defect Liability Period (DLP) expires. Sobha Contracting & Consultants remain available to assess and rectify issues, taking full responsibility for necessary resolutions for genuine design-related issues—a distinctive approach that reinforces customer trust and satisfaction.

2.6.4. Optimizing Amenities Through Forward Integration

Sobha’s forward integration enables seamless collaboration between Sobha Community Management (SCM) and the development team, ensuring that community amenities are thoughtfully designed to align with resident preferences. By incorporating SCM’s insights during the planning stage, future projects are shaped by real community feedback, leading to sustainable and high-quality living spaces.

Recent additions driven by resident demand include:

n Paddle tennis courts—now the most sought-after community feature

n Barbecue stations

n Skate Park

n Outdoor gymnasium and walkways

n Outdoor children’s play areas

By leveraging Sobha’s forward integration, SCM continues to set new benchmarks in operational excellence, sustainability, and resident experience.

2.7. Human Resources

2.7.1.

The Strategic Impact of Backward Integration on Human Resources: A Sobha Realty Perspective

In the evolving landscape of real estate and construction, backward integration serves as a powerful lever

for organizations seeking greater control, efficiency, and quality across their value chains. For a vertically integrated enterprise such as Sobha Realty, backward integration is not merely an operational strategy, it is a critical enabler of human capital optimization. This section outlines the key benefits backward integration brings to the Human Resources (HR) function, enhancing workforce agility, compliance, and strategic workplace environments for skilled trades and professional talent seeking career stability and ethical practices.

2.7.1.1. Enhanced Control Over Talent Acquisition and Skill Development

By internalizing supply chain functions such as raw material procurement, manufacturing, and logistics, Sobha Realty positions itself to directly manage a broader and more specialized workforce.

n Custom Talent Pipelines: HR can build tailored recruitment and training frameworks for niche roles (e.g., skilled trades, technicians in prefabrication, logistics coordinators), which are traditionally difficult to staff through third-party vendors.

n Alignment with Organizational Culture: Direct control ensures consistent onboarding, values integration, and performance management aligned with Sobha’s brand ethos and quality standards.

2.7.1.2. Reduction in Third-Party Labor Risks

Backward integration minimizes dependence on subcontractors and labor vendors, a common source of variability in quality, compliance, and labor relations.

n Standardized Employment Practices: Enables HR to implement uniform policies across vertically integrated  units, reducing legal and ethical exposure.

n Improved Workforce Reliability: Greater control over scheduling, attendance, and productivity enhances operational predictability, an essential factor in project-based industries like real estate.

2.7.1.3. Operational Cost Efficiencies Enabling Strategic HR Investment

Cost reductions achieved through internal sourcing of materials and services create opportunities for HR to reinvest in high-impact areas.

n Employee Experience and Retention: Freed-up resources can be allocated to wellness initiatives, training programs, and career development strategies, critical to retaining talent in a competitive market.

n Technology and Automation: Investment in HR technology (e.g., integrated workforce planning tools, learning management systems) becomes more feasible with cost efficiencies from upstream operations.

2.7.1.4.

Improved Workforce Planning and Cross-Functional Synergy

Backward integration fosters tighter collaboration between business units, improving HR’s ability to anticipate and meet workforce needs.

n Integrated Demand Forecasting: Real-time coordination between manufacturing, logistics, and project execution teams enhances workforce planning accuracy.

n Agile Resource Deployment: With greater internal control, HR can more dynamically reallocate labor resources based on shifting priorities and timelines.

2.7.1.5.

Strengthened Employer Branding and Labor Compliance

Internalized operations provide greater visibility into workplace conditions, ethics, and employment practices, areas of increasing importance to both talent and regulators.

n Transparent Labor Practices: Demonstrates Sobha’s commitment to ethical employment, fair wages, and safe working environments, key differentiators in a fragmented industry.

n Brand Reputation: Promotes Sobha as an employer of choice, especially among skilled workers and professional talent seeking stability and purpose-driven work.

For Sobha Realty, backward integration is not solely about operational control; it is a strategic advantage

for Human Resources. By expanding its scope to manage the end-to-end value chain, HR gains enhanced capability to manage workforce quality and long-term talent alignment in sync with business strategy, culture integration, and long-term talent sustainability. This alignment between business strategy and people strategy positions Sobha to lead not only in construction excellence but in organizational resilience.

2.8. Sobha Furniture

2.8.1. Manufacturing Integration within the Development Value Chain

Sobha Furniture exemplifies the strategic application of backward and forward integration within the vertically aligned Sobha Realty ecosystem. Positioned as an in-house manufacturing unit, it links design intent with final execution through centralized control, digital platforms, and high-precision production technologies. Designed in Milan, Italy, and manufactured in the UAE, the product line reflects a blend of global design sensibilities with localized execution efficiency.

Operating from a cutting-edge facility in Khalifa Economic Zone Abu Dhabi (KEZAD), Sobha Furniture leverages automation and integrated information systems to produce a range of interior elements, including fitted wardrobes, kitchen cabinets, vanities, and interior doors. Its operations demonstrate how embedded manufacturing capabilities can deliver higher standards of quality, consistency, and responsiveness both upstream during design development and downstream during post-handover maintenance (see figures 17 and 18).

2.8.2.

Backward Integration: Design-to-Factory Coordination

Upstream Coordination and Execution Control

Sobha Furniture’s role begins early in the design process through integration with architectural, MEP, and interior teams. Shared digital design platforms allow for real-time co-development of layouts, enabling early validation of technical feasibility and

constructability. Furniture layouts are aligned with spatial constraints, services, and finishes, minimizing rework and enabling efficient installation. This design-to-factory model is supported by detailed shop drawings and standard Building Information Modeling and Computer-Aided Design (BIM-CAD) templates that bridge disciplines and reduce installation errors.

The factory incorporates Computer-Aided Design and Computer-Aided Manufacturing (CAD-CAM) integration and Manufacturing Execution Systems (MES), which enable precision-based manufacturing, enhance accuracy, and reduce human error. In-house production reduces reliance on external vendors, mitigates supply chain risks, and allows for strict quality checks at multiple stages. As a result, the system supports better quality assurance at final handover and improves customer satisfaction through reduced snags.

Digital Feedback Loop and Continuous Learning

Installation feedback collected through site observations and Enterprise Resource Planning (ERP)

systems is routed back to the design and engineering teams. This feedback loop helps improve future design details and buildability while creating institutional memory that supports continuous improvement across project cycles. In this way, backward integration contributes not only to execution but to knowledge accumulation within the organization.

Comparative Advantage Over Outsourcing

Unlike outsourced manufacturing models, Sobha Furniture’s in-house operation offers reduced lead times, tighter quality control, and greater adaptability to project-specific requirements. Centralized scheduling via ERP platforms and real-time production tracking enhance reliability and delivery predictability. Scale efficiencies, material optimization, and reduced wastage further contribute to cost-effectiveness and environmental sustainability.

Figure 17. Technician at Sobha Furniture working on wood components in a production unit, applying standardized craftsmanship processes.
Figure 18. Sobha Furniture production and manufacturing unit.

2.8.3. Forward Integration: Customization, Maintenance, and Brand Continuity

Post-Handover Traceability and Service

Sobha’s IT and ERP infrastructure enables traceability for each manufactured component, facilitating easier replacement and lifecycle maintenance after handover. Digital part tagging supports faster troubleshooting and service scheduling. This post-handover integration allows Sobha Realty to maintain product performance, close the feedback loop, and provide long-term operational reliability to end users.

Scalable Customization

The facility supports AI-enabled, flexible manufacturing lines capable of accommodating customizations at scale. This is particularly relevant for international markets, where variations in regulations, cultural preferences, or layout configurations may demand tailored solutions. In-house manufacturing allows such agility while preserving cost control and quality consistency.

Standardization and Brand Identity

Material and design standards are embedded in unified digital systems including ERP and centralized CAD templates which enable consistent output across geographies. This ensures that project sites, whether local or global, reflect Sobha Realty’s premium brand identity and aesthetic values.

Logistics and Project Synchronization

ERP-driven planning tools coordinate production and site delivery schedules, aligning furniture installation with construction milestones. This reduces on-site storage needs, mitigates delivery delays, and enhances overall project efficiency. Integrated scheduling between factory and construction teams allows faster project turnover and improved site logistics (see Figure 19).

2.8.4. Future Outlook: Capacity Expansion and Strategic Growth

To meet growing internal demand and support external project pipelines, Sobha Furniture is scaling

Figure 19. Sobha Furniture logistics, information, and data flow.

its operations. Two major developments are currently underway:

n Dubai Industrial City Facility: A new mega factory expanding into cabinetry, upholstered, and case goods furniture. Expected completion in Q4 2025, this facility will offer 5 times higher production capacity than the current operation and enable output for 8,000–10,000 apartments annually reflecting a 100% capacity increase.

n DIC Door Manufacturing Line: A dedicated interior door manufacturing line, planned to commence production by Q1 2028, will support mass manufacturing aligned with future construction schedules.

These expansions underscore the integrated nature of growth planning within Sobha Realty, where manufacturing capacity is scaled in anticipation of project pipelines and client expectations.

2.8.5. Conclusion

Sobha Furniture demonstrates how backward and forward integration across design, manufacturing, and maintenance functions can contribute to a seamless delivery process, reduced project risk, and enhanced customer outcomes. As part of Sobha Realty’s broader integrated delivery framework, it represents a replicable model for embedding manufacturing directly within the real estate value chain, supporting innovation, consistency, and speed in highdensity urban development.

3.1 Sobha Hartland II

3.1.1. Project Overview and Planning Context

Sobha Hartland II is a large-scale, mixed-use development located within close proximity to Downtown Dubai, occupying a gross site area of approximately 8.6 million sq ft (799,000 m2) and a built-up area of 12.7 million sq ft (1,180,000 m2). Designed as an integrated waterfront community, the project is planned to accommodate over 26,000 residents across a typologically diverse mix of high-rise towers, mid-rise blocks, and low-rise villas, complemented by extensive landscape and public amenity systems (see Figure 20).

The master plan organizes the development around a central spine comprising a 1-kilometer elevated canal and three man-made lagoons (see Figure 24). These water features are embedded within a broader public realm strategy that incorporates over 18 hectares of open space, a 5-kilometer pedestrian and cycling network, and a distributed framework of plazas, shaded corridors, and community health nodes. Approximately 25% of the total site area is dedicated to open and green spaces (excluding rooftop gardens).

From a sustainability perspective, the development targets multiple LEED certifications: LEED Silver for its thirteen residential towers, LEED Gold for the on-site educational facility, and LEED Platinum for Sobha’s global headquarters, also located on the site. Environmental and climatic considerations have informed key planning decisions, including orientation, ventilation corridors, shaded public paths, and provisions for microclimate regulation.

Rather than positioning Sobha Hartland II solely as a premium residential enclave, the master plan adopts

Figure 20. Location of Sobha Hartland II in Dubai, UAE.
Above: Sobha Hartland 2, Nad Al Sheba 1—Dubai

a systems-thinking approach, integrating land use, infrastructure, and placemaking to support long-term urban resilience. The project aligns with strategic

objectives outlined in the Dubai 2040 Urban Master Plan, particularly with respect to promoting polycentric growth, transit-oriented development, and compact, mixed-use

REJUVENATE

Embedding communities in nature, fostering healthy way of life and community wellbeing.

THRIVE

Elevating lifestyle by creating a dynamic and inclusive leisure destination.

CONNECT

Fostering strong community bonds through creative spaces that catalyze social events and activities.

A. Mixed Use Residential Towers

B. Mixed Use Office Towers

C. Residential Villas

D. Ultra luxury Mansions

1. School

2. Mall

3. Juma Mosque

4. Local Mosque

5. Community Clubhouse

6. District Park

7. Community Park

8. Family Park

9. Children’s Nursery

10. Polyclinic

11. Waterfront Retail

12. F&B

13. Plaza

14. Ball Games

15. Tennis Courts

16. Skate Park

17. Hammocks

18. Children’s Play Area

19. Wave Pool

20. Beach Activities

21. Kayaking

22. Cycling and Jogging Track

23. Jogging track

24. Outdoor Gym

25. Water Fountain show

26. Lazy River

27. Open Amphitheatre

28. Cabana and lounger spaces

29. Open Marketplace

30. Ambulance Station

31. Smart Police Station (SPS)

32. Bus Stop

Figure 22. Sobha Hartland II illustrative master plan.
Figure 21. Concept diagram for Sobha Hartland II.

districts with embedded lifestyle infrastructure (see figures 21 and 22).

3.1.2. Integrated Planning and Development Processes

Parallel Workflows and Internal Coordination Mechanisms

In contrast to conventional, linear development models that separate the roles of client, consultant, and contractor, Sobha Realty employs a vertically integrated approach wherein all key functions are housed within a single organizational framework. This structure facilitates parallel progression of master planning, architectural design, infrastructure development, regulatory coordination, and cost evaluation.

Within this model, early-stage scenario testing and program definition are undertaken with simultaneous input from design, commercial, and marketing teams. Unit mix, massing strategies, and phasing decisions are directly informed by internal sales data, development analytics, and future market forecasts. By eliminating traditional interdependencies between disciplines, the planning process becomes more agile and iterative,

Early concept design, luxury villa community with direct access to lagoons.

with reduced turnaround times for approvals, redesign, or realignment.

An important component of this approach is the inclusion of community operations and facilities management teams during the planning phase. Feedback from prior projects and end-user experience data are embedded into the spatial layout and service strategy to enhance long-term operational quality. This feedback loop strengthens the connection between planning intent and post-occupancy performance, positioning the master plan as both a physical and experiential framework.

Iterative Scenario Testing and Design Adjustment

The master plan for Sobha Hartland II underwent multiple cycles of revision based on technical, environmental, and commercial feedback. Originally envisioned as a lagoon-oriented sanctuary, the development required significant adaptation to meet feasibility constraints and environmental impact guidelines. These included segmenting large central water bodies to enable improved maintenance access and ecological performance, without undermining the overall continuity of the waterfront public realm (see figures 23a and 23b).

Villa community modified to accommodate community facility requirements.

Master plan revised to incorporate the inputs from Road and Infrastructure sub-consultants.

Mixed-Use residential plots redistributed as per brief from Development Team.

Master plan updated to accommodate the increase in GFA from 8.6 million sq ft (799,000 m2) to 12.7 million sq ft (1,180,000 m2).

Mixed Use Residential plots updated considering maximum allowed building height.

Figure 23a. Sobha Hartland II iterative scenario testing and design adjustment.

Internal coordination between infrastructure, cost management, and landscape teams enabled the creation of a series of smaller lagoons linked through active open spaces and programmatic nodes. This modification preserved the experiential quality of the water-centric vision while enhancing constructability and long-term upkeep.

In parallel, commercial scenarios, including office and hospitality zones were modeled and stress-tested using in-house development tools. Final land use allocations were adjusted to align with both regulatory requirements and updated market demand forecasts. The ability to test and refine such strategies in real time without waiting for external consultant rounds, allowed the project team to maintain forward momentum and minimize design obsolescence during decision-making.

Regulatory Strategy and Authority Engagement

Given the site’s location within a sensitive Ramsar wetland buffer zone, Sobha Hartland II required early and proactive engagement with environmental and planning authorities. A dedicated internal team led regulatory coordination efforts from the outset, ensuring that authority expectations were integrated into the design process, rather than being addressed reactively.

As part of the land acquisition phase, Sobha commissioned environmental and hydrogeological assessments covering both the site and its broader catchment. These findings were relayed to planning and infrastructure teams in real time, enabling mitigation strategies to be embedded into the master plan. This approach shortened the overall approval timeline from the typical 16-month period to under 12 months, reflecting the benefits of upstream alignment and in-house regulatory capacity.

3.1.3. Adaptive Planning and Design Recalibration

Integrated Response to GFA Increase and Infrastructure Demands

The master plan for Sobha Hartland II underwent a major reconfiguration following a significant increase in the approved Gross Floor Area (GFA). Originally designed with a GFA of 798,966 m2 for phased development, the project was allocated an additional 4.1 million sq ft post-Phase 1 completion. This change necessitated a full revision of the authority-approved master plan and re-examination of its spatial, infrastructural, and programmatic parameters (see Figure 23b)

Figure 23b. Key changes in master plan to accommodate the increase in GFA.
Land use at 8.6 million sq ft (799,000 m2) total GFA
Land use at 12.7 million ft2 (1,180,000 m2) total GFA
added to accommodate increased trip generation
GFA added above mall

The design adaptation process was coordinated across internal master planning, architecture, infrastructure, and engineering teams. The increase in buildable area led to a projected population growth from 17,500 to 25,500 residents. This, in turn, triggered recalculations for road capacities, parking provisions, community facilities, and utilities demand. Adjustments were made to land use allocations, tower footprints, and unit typologies to absorb the additional density without compromising liveability, connectivity, or green cover targets (see figures 25 and 26).

The capacity for rapid response was enabled by Sobha’s integrated delivery model, where design, planning, cost, and regulatory functions operate within a common platform. Revised submissions were prepared and approved without extended delays, demonstrating the operational efficiency of an internalized coordination framework.

Environmental Constraints and Vertical Reconfiguration of the Canal District

During the detailed design phase, site-specific environmental constraints emerged within the central

canal district. Geotechnical and environmental studies indicated that constructing basements in this area could have adverse ecological impacts. In response, the development team restructured the design to elevate the entire canal district to Levels 2 and 3, thereby mitigating potential environmental risks.

This elevation strategy affected 15 development plots, including 14 high-rise towers, and necessitated significant design changes across structural, circulation, and access systems. A new multi-level public realm was introduced, integrating retail, recreational, and landscape programs around a raised canal edge, while consolidating vehicular services and parking within podium levels. The revised scheme maintained programmatic continuity while improving environmental performance and commercial viability (see Figure 27).

This transformation was made possible by real-time collaboration between internal master planners, architects, infrastructure engineers, and MEP specialists. Without such integration, a change of this scale, post-concept approval, would have likely resulted in extended redesign periods and risked loss of project momentum. Instead, the reconfiguration enhanced pedestrian experience, activated

Figure 24. Sobha Hartland II superblock lagoon render.

street edges, and unlocked latent site potential, offering a case study in resilience through organizational cohesion.

3.1.4. Design Acceleration and Execution Synergy

Integration of Planning and Design Coordination for Buildability

The Sobha Hartland II project demonstrates the impact of early, sustained coordination between master planning and detailed architectural design teams. Within Sobha’s vertically integrated delivery structure, in-house architects, planners, engineers, and construction teams are engaged from project inception, enabling decisions on massing, orientation, and public realm interfaces to be made with an understanding of buildability and sequencing constraints.

For example, the high-rise zone at the north-western edge of the site was developed using a unit-mix model informed by sales data, sunlight simulations, structural span optimization, and façade engineering feedback. By conducting multiple layers of technical and commercial testing in parallel, the project team was able to accelerate the transition from initial concept to an approved master plan in under 12 months.

This approach also allowed for the early identification and resolution of design conflicts. Tower podiums were pre-coordinated with internal MEP, parking, and vertical circulation strategies to ensure uniformity across 13

residential towers. Such alignment significantly reduced re-works and allowed for smoother handovers between planning, design, and construction phases.

Design Efficiency and Timeline Compression

One of the most notable outcomes of Sobha’s internalized workflow is its ability to compress design and approval timelines without compromising quality. In conventional development models, each design milestone, such as concept, schematic, detailed design, typically involves multiple external stakeholders and prolonged feedback loops. In contrast, Sobha’s integrated teams operate with shared project timelines, allowing for concurrent rather than sequential progress.

Figure 25. Engaging, walkable public space activated by a variety of water experiences and lined with retail offerings.
Figure 26. Tiered open spaces enhance livability by separating resident and public zones within a vibrant, high-density destination.

At Sobha Hartland II, the canal district was developed as a fast-track package where planning, landscape, and infrastructure teams co-developed design schemes over a series of integrated review workshops. Key public realm features such as pedestrian bridges, elevated retail connections, and stepped waterfront terraces were resolved through coordinated 3D models, minimizing design discrepancies and enabling early procurement of critical components (see figures 27 and 28).

The project’s internal design management system also contributed to timeline compression. Weekly jointreview sessions between planning, architecture, and execution teams allowed for agile iteration, immediate issue resolution, and proactive risk identification. This model of concurrent design-management shortened the average development timeline for tower plots from 14 months to 9–11 months.

RECREATIONAL & FITNESS AMENITIES

RETAIL & F&B

DESTINATION ACTIVITIES

Figure 28. Iconic water and lights show offering an immersive experience.
Figure 27. Sobha Hartland II – tiered open spaces enhance liveability by separating resident and public zones within a vibrant, high density destination.
SKY GARDENS

3.1.5. Conclusion: Toward a Replicable Framework

The evolution of the Sobha Hartland II master plan offers a demonstrable model for how vertically integrated development structures can generate adaptive, efficient, and resilient design responses in rapidly urbanizing environments. Faced with significant changes in development program, site constraints, and population demands, the project’s internalized model enabled a level of design responsiveness rarely achievable through fragmented delivery systems.

Three characteristics define this framework:

1. Integration across scales—from land use and infrastructure to building systems and interiors, facilitated seamless transition between planning, design, and execution.

2. Institutional memory and co-located expertise reduced feedback loops and enabled live iteration, especially in response to late-stage changes in regulatory, geotechnical, and market conditions.

3. Design-for-delivery mindset, embedded from the outset, ensured that accelerated design timelines did not come at the expense of buildability or performance.

While Sobha’s delivery model benefits from being selfcontained, the core principles evident in this case, early interdisciplinary engagement, shared project ownership, and iterative design feedback, offer potential lessons for large-scale urban developments beyond Dubai. As cities globally continue to densify and pursue complex mixed-use programs, replicable frameworks that bridge planning and execution will become increasingly relevant to the tall building community.

3.2. Prefabricated Bathroom Units (PBUs)

3.2.1. A Brief Introduction to Sobha’s PBU Journey

How can a company manufacture 13,000 prefabricated bathroom units (PBUs) in just 19 months and lead the way in revolutionizing construction? How often do we see real estate development companies handing over projects 6 months ahead of schedule?

Sobha Realty has managed to achieve both, which is a remarkable milestone in the construction industry. Sobha, by embracing modular construction techniques and leveraging PBUs, has not only improved the speed of delivery, but has also set new standards for efficiency, quality and sustainability. This achievement shows Sobha’s ability to integrate innovative construction technologies into its unique backward-integrated business model, which ensures full control over design, manufacturing and construction (see Figure 29).

This section will briefly explore Sobha Realty’s journey with Prefabricated Bathroom Units PBUs, from its initial decision to implement this approach to its journey so far. It will highlight the factors that make the Sobha PBU stand out in this industry, focusing on its design, manufacturing, handling and installation. This section will also delve into how the implementation of certain strategies like standardization have contributed to improved efficiency in both the design and manufacturing processes.

3.2.2.

Benefits of PBUs

It has been commonly reported that Bathroom Pods or PBUs can offer significant benefits to projects such as a reduction in site labor and supervision, improvements in site logistics, as well as an overall reduction in project

Figure 29. Standardized Prefabricated Bathroom Units (PBUs) for projects.

Conventional Construction Schedule

Design Permitting Foundation On-Site Construction

Modular Construction Schedule

Design Permitting Foundation Time Saved On-Site Construction

timescales, resulting in earlier handovers and faster Return on Investment (ROI).

According to a paper published by the Modular Building Institute in 2017, one project benefited from “43% fewer people used to build the superstructure… [and] 44% fewer total man-hours,” resulting in “37% less time and delivered four months ahead of the schedule.”14

A primary benefit of PBUs in a project is the ability to manufacture in parallel with the substructure works on-site. This parallel working method is a key factor in reducing the project timeline, by creating fully-finished bathrooms that are ready to slot into the building as soon as the building structure for that floor has been completed. This not only provides a finished room, but also enables other works to commence, such as MEP connections, shaft closure, internal wall assembly and finishing, to name a few.

When taking the work off-site it becomes possible to carry out tasks in a highly controlled manner. Whereas typically, a construction site employs skilled tradespeople who can work largely unsupervised, dealing with differing tasks, environments and varying conditions, a factorybased operation allows processes to be carried out within a predefined space, under close supervision, in a repetitive scenario. This turns a traditional multi-faceted worker into the owner of a process where the task can be repeated, monitored and checked for quality very easily. These predefined workspaces or manufacturing zones can then be set up with the optimal working conditions and tooling required to carry out the tasks efficiently and safely, while reducing the travel time between job zones and material storage areas (see Figure 30).

Having a controlled factory environment means that typical on-site variables such as weather, material logistics and supervision and rework, which can severely hamper the construction plan and overall timeline, can be highly controlled or even mitigated completely.

Centralizing the manufacturing of a building or its elements into a factory unit affords continuity of workplace to operatives, therefore reducing time and money spent on transportation and temporary accommodation set-ups. Centralization also drives greater investment in specialized machinery, such as robotics and automated processes, which would not be practical at the building site. This makes it possible to generate greater efficiency through standardization, repetition and the potential to remove many manual processes.

Along with gains in production speed, carrying out the work in a controlled centralized environment also brings benefits in terms of quality. Use of automated machinery to produce the basic elements (floors, walls, roofs) enables accuracy within a few millimeters, all but eradicating the need for unexpected alterations or rework, which can account for more than 30% of construction work related to rework.15

Around 40% of landfill waste comes from construction16 so it is clear to see why governments around the world are targeting this industry for improvements; there have been various studies completed to date that suggest off-site construction is the answer to this problem.

Aye et al. deduced, through a literature review, that construction waste can be reduced by 52% through

Figure 30. Process Comparison (WSP, 2018, 02).

the minimization of off-cuts.17 There are also waste reductions to be gained by re-using these off-cuts elsewhere in the process, for example, another module or later project. Batching stations for mixing concrete and adhesives, etc., can be centralized, creating supply in the correct quantity to all units, reducing waste borne out of over-mixing and the material exceeding its open time for use.

3.2.3. Importance of Modular Solutions Within Sobha’s Strategy

In line with Sobha’s Mission 70-70 strategy for 2025 to manufacture a minimum of 70% of the building off-site, with 70% of that work being automated, modular solutions such as PBU can contribute significantly towards achieving those goals. Typically, the bathrooms make up on average 9% of floor space in Sobha apartment buildings; therefore, in a typical project, efficiencies gained via Sobha PBUs can play a substantial role in achieving the company’s goals. Kitchen and utility rooms account for approximately 6% and 1% of floor space, respectively; these units could represent approximately 16% of GFA within mediumto-high-rise projects.

In addition, Sobha is already implementing modular MEP units above the PBUs and in corridor areas, with many other exciting opportunities being explored.

3.2.4. Role of Modularization in Urban Housing and Tall Buildings

The relevance of modular construction extends beyond Sobha’s internal goals; it addresses global urban housing challenges.

With an increased demand for housing globally, coupled with the reported relevant skills shortages in many geographical areas, we are seeing a lag between housing provided and the market requirement. For example, the UK today has a backlog of 4.3 million homes, which is 10% fewer dwellings per person than the Organization for Economic Cooperation and Development (OECD) average.18 The government pledged to build 300,000 homes annually in 2017 in a bid to catch up with demand, but has yet to get close to those targets, while demand increases year on year. According to the latest information published from the UK government19 that target has fallen short by an

average of 21.6% since 2017 to date. The new target set by the government in 2024 is to achieve 1.5 million new homes over the course of the current Parliament, which is in line with the previous goal of 300,000 new homes per year.

In a report published by the Department for Communities and Local Government entitled Fixing Our Broken Housing Market, it was deemed that “Boosting productivity and innovation by encouraging modern methods of construction (MMC) in housebuilding” was an important factor to speed up residential unit delivery. However, MMC made up only 8% of UK home delivery in 2020.20

Modularization of buildings and building elements is certainly one viable solution to supplement more conventional methods of delivery. By acting as an additional stream into the housing market, off-site construction has the potential to thrive in a space that has yet to be filled.

According to a study carried out by Hadley Group21 in the UAE in 2019, which compared their light-gauge steel frame (LGSF) system with traditional blockwork walls, they concluded that using LGSF to install 2,000 m2 of external wall by would be faster by 102 days or 187%. The study also found that, while the material costs were around 29% higher with the LGSF system, significant savings in installation costs were achieved, making the overall cost of the LGSF system around 60% cheaper. Another important discovery was the amount of wastage between the systems, with blockwork accounting for 20% of wastage and LGSF only 1%; a reduction of 95%. The study also recorded less than half of the embodied carbon with the LGSF system.

3.2.5. Backward Integration

Sobha’s In-House Ecosystem Supports PBU Design and Production

In conventional construction projects, prefabricated bathroom units (PBUs) often face challenges in standardization due to varying clients, site conditions, and design intents, coupled with fragmented project teams. While a project-specific design and build approach can still yield benefits, greater efficiencies are realized when PBUs are developed within a unified,

integrated framework. At Sobha, backward integration enables a standardized design methodology to be applied across multiple developments. This holistic approach streamlines the design, production, and installation of PBUs, enhancing both consistency and efficiency across projects.

Advantages of Early-Stage Design Integration

With the maturation of the Sobha PBU system, coupled with the valuable hindsight of lessons learned, the team was soon able to delve beyond concept stage intervention, moving instead to guiding the pre-concept design itself. This was achieved by establishing a set of standard PBU configurations that can be pulled from a library of parts and dropped into the concept General Arrangement drawings GA’s during the initial drafting stage. A “data-light” (small file size with fewer details) PBU “placeholder” (see Figure 31) can be downloaded and installed to both two- and three-dimensional formats and configured into the floor plans, giving the architect an anchor point to develop the wider design.

These “placeholders” can then be scheduled in a matter of seconds to provide an accurate take-from PBU typologies, handing and quantities. This brings

efficiencies by both removing the need to manually count and analyze these quantities, but also giving the knowledge that these modular units have come from the PBU design team, from a set library of verified designs, with each type having a highly detailed set of manufacturing drawings that can be shared with the shop floor, along with CAD/CAM capabilities (see Figure 32). On any occasion where these standard units may not be suitable, there is the option to request a bespoke unit that is pre-assessed by the PBU design team for its feasibility before the placeholder is provided.

Further to this, concept stage reviews can then be carried out with greater focus on the changing apartment layouts rather than PBU feasibility, where focus turns to logistic and installation suitability and adherence to PBU setting out/spacing tolerances that have been set out in the PBU checklist.

This approach has clear benefits when coming to the detailed design stage, as both the uniformity in PBU design, coupled with the predefined placement rules reduce the comments and subsequent rework that would inevitably be required if engaging a PBU contractor at this later stage.

Figure 31. 3D model of a PBU placeholder and detailed model.

Delivering a Superior-Quality Product Efficiently

Having a highly detailed PBU, with known materials, details and interfaces can be highly advantageous. The design can be optimized to reduce material wastage, as well as benefit from previous lessons learned via past project implementation. This provides smooth integration into the early-stage design, where confidence can be embedded into the process by giving other disciplines the ability to proceed unhindered.

As with a physical environment, reworking in a virtual setting can be a disruptive process. Providing the certainty of a fully pre-developed, highly detailed unit can become an anchor point on a relatively blank canvas that affords architects the freedom to focus on delivering the best use of space elsewhere, without having to revisit the PBUs at a later stage, along with other interfacing elements.

PNCA, the consultancy arm, has begun to reap the rewards of this approach, with one example being the re-configuration of the PBU placeholders so that they automatically alter their appearance depending on the level of detail selected, to match seamlessly with the required company format for marketing collateral. This has enabled the team to use them directly in the

concept-stage floor plans and negates the need to manually draw them in and replace them later with the modular units, thus speeding up the process and reducing unnecessary rework (see figures 33 and 34).

Quality Assurance Systems

At Sobha, the team believes in full transparency when it comes to all aspects of the business. None more so than quality, where great lengths are taken to ensure that the products meet the expectations of the customers and the company ethos. This level of collaboration and openness can only be realized when vertical integration aligns the major players in the supply chain.

For the PBUs alone, the team has 28 tasks that must be completed and evidenced before the unit is cleared to leave the factory. Each task represents a significant manufacturing gateway that must be passed through before moving on to the next, bringing with it a high degree of control. Rather than vesting this control in a few gatekeepers, it is instead given to the production staff to take responsibility and evidence appropriately, based on the agreed standards and processes, then audited by dedicated teams to ensure those standards are being maintained.

Figure 32. An example of PBU schedule from Building Information Modeling (BIM) software.

3100 X 3500

3050 X 3500 LIVING 1350 X 2650

CLOSET 1900 X 1650

Figure 33. An example of an apartment layout in general arrangement (GA) drawings.
Figure 34. An example of an apartment layout in Sobha marketing collateral.
BEDROOM
BEDROOM
BATHROOM 2600 X 1600
BATHROOM 2600 X 1600

By leveraging digital platforms to both track and record progress, Sobha can manage quality across multiple streams, operating in different locations more effectively. For PBUs alone, Sobha uploads hundreds of thousands of photo and video files per month to its digital repository as evidence and record of tasks completed. All this proof of work is linked to a specific PBU, for a specific location within each project, and therefore can be traced back to a specific date the work was carried out and by which operative. This full transparency enables the team to travel back in time and identify or eliminate any potential root causes of successes and failures and make better, informed decisions down the line.

3.2.6. Forward Integration

While backward integration supports the downstream business strategy, forward integration helps the team to influence decisions upstream by considering client and end-user feedback to shape the design decisions.

Via the use of the PBU “placeholders” mentioned earlier, the team not only brings certainty downstream but are influencing the decisions made upstream also. Room designs can be literally designed around the PBU, utilizing blocks from a standard library of units with known quantities and the added value of prior implementation, which reduces unforeseen issues and rework.

The team has extended this standardization to a specification level, where the team can platform parts such as early-stage MEP installations, consumables and some finish items, while providing variation within standardization by way of final-fix items, colors and finishes, which can be aligned with the different projects but have no impact on the core design itself. This approach provides quantifiable data on materials and costs to commercial teams upfront, based on known data, rather than having to wait for trials and mock-ups to validate the data.

These benefits can be extended to manufacturing output, site interfaces and logistics by removing the unknown factor associated with a bespoke, project-specific design.

Use of BIM and Other Digital Tools

From inception to execution and post-handover, the PBU has a digital footprint that can be precisely tracked. From PBU placeholder in the concept design, providing

the key dimensions and data required to accurately plan other interfaces, to the detailed Issued for Construction (IFC) drawings used to manufacture the PBU and quantify Bills of Materials (BOMs), the data is stored in a fully accessible BIM platform which acts as the common data for both the modular facility and site operations. Further to that, each PBU build and install stage is recorded within Sobha’s productivity platform, again fully accessible to all parties, which tracks each individual PBU’s production dates, materials and quality gateways, along with visual evidence in the form of photos and videos. Through this system it is possible to fully track the PBU, specific to its final location, including all actions and comments received along the way. This transparency enables the team to review each stage retrospectively if required as well, as promoting individual responsibility at all levels to ensure best practice and highest quality is maintained.

Integration of Post-Occupancy Feedback and Maintenance Insights

This enables Sobha to act based on live, ongoing experiences from both current project builds and previously completed estates. As this information is communicated via regular channels, with no preference or bias other than making the right decisions for the customers and the Sobha brand, the team can ensure that the right, informed decisions are being made. The products the team uses are backed up with a rigorous technical review, design detailing, mock-ups and stakeholder and supplier participation, as well as in many cases, positive experiences gained from previous utilization.

One example of this was the post-occupancy feedback received on a small number of water leaks occurring due to splits forming in the shattaf (bidet) spray hoses. Although the severity of these events had already been mitigated due to a floor trap installed to drain any water from the bathrooms, the feedback prompted an investigation into these product failures. As a result of this, a selection of products was taken from the market and tested to be failure in an independent lab, along with some internal analysis. The results were compared, which enabled comparisons to be made, and a preferred option emerged. This option, despite being higher in cost, was promoted to all stakeholders, with budget allowances made to incorporate this better-performing product and specifications revised.

This is the kind of transparent collaboration that can only be effectively achieved in an organization practicing backward and forward integration policies.

Scaling Forward Integration Across Projects and Regions

When operating within a company experiencing such growth, there is an inevitable influx of new staff, often operating in different regions. This can pose some challenges when indoctrinating personnel who have not experienced this level of company integration. However, the team has found that the benefits of Sobha’s unique backward and forward integration model help it to align personnel more effectively. The use of standard documents such as drawing details, operating procedures, method statements and training materials can be used during the induction process. Having access to other projects and more experienced team members is also an advantage, as knowledge can be easily shared when required. As stated earlier, having consistent stakeholders reduces a lot of uncertainty due to the alignment to company values and past experiences.

3.2.7. Modular Strategy and Standardization Framework

With back-to-back project launches and the increasing number of architects and their teams working on multiple projects, Sobha found itself facing a unique challenge. As new architecture teams joined to meet the growing design demands, the number of size and design variations in the PBUs kept increasing. The architecture teams having experience in traditional construction were used to a more customized approach for each project and were not aware of how this could lead to

inefficiencies, inconsistencies and potential challenges in mass production.

This challenge became even more visible after the setup of Sobha Modular factory, which was built to support high-volume production of PBUs with consistency and precision. While the factory offered the capability for large-scale manufacturing, the rising design variability started impacting its efficiency. This is where standardization came into the picture and it was not an improvement; it was a necessity to achieve the cost efficiency and manufacturing output required to meet Sobha’s project requirements.

Incorporating a specific percentage of standard PBUs was crucial for the company’s real estate development. By implementing standardized sizes and designs, design and manufacturing processes were streamlined, consistent quality was ensured, maintenance and repairs were simplified, and cost-effectiveness was enhanced. This approach improves project timelines, and delivers highquality PBUs, ultimately providing seamless and efficient experience for end-users, while achieving significant cost reduction and cost-effectiveness for the company.

Methodology Adopted for Standardization

The PBU team at PNCA started the exercise by gathering data, mainly the internal dimensions for the shower and powder PBUs from the initial eight projects. The collected data was categorized into different length and width bands to examine their distribution (see Figure 35). Through this analysis, the bands with the highest PBU quantity contribution were identified. The average or most-repeated values of the dimensions from these bands were considered to arrive at standard

Figure 35. Length and width band distributions among the analyzed shower (left) and powder (right) PBUs.

PBU dimensions (see figures 36 and 37). In some cases, the bands have been combined to arrive at sizes that are more practical and in line with the current PBU dimensions. In the case of maid PBUs, as the layouts varied in shape based on projects, analyzing the dimensions was not practical. Hence, layouts from previous projects that were practical and efficient were selected as standard maid PBUs.

The outcome of this exercise was three standard sizes for the shower PBUs and two standard sizes for the powder PBUs, which would meet a wide range of architectural layout and project requirements.

Apart from the standard sizes, each PBU will have two door position options and two shaft position options (for shower PBUs only) from which the architecture team could choose to meet the layout requirements. These could be called variations within a fixed size. For every

PBU design, there will be a mirrored version which means that if there is a PBU with a fixed internal dimension, it will have a total of eight variations, considering door options, shaft size options and their mirrored versions for the shower and powder PBUs. It must be noted that each size and variation options was analyzed for their practicality before being finalized (see figures 38 and 39)

In case of maid PBUs, the layout, shape, and sizes have varied widely, making the data scattered to determine standard sizes if analyzed. Hence, the approach was to review the layouts and sizes to arrive at standard sizes that have proven to be practical and efficient. Also, it must be noted that the impact of having non-standard maid PBUs in a project is minimal, as they usually make up less than 10% of the total project quantity. After the review, two layouts with different sizes were selected as standard maid PBUs. Maid PBUs too will have two door position options like others, and all the variations will

Total Number of Shower PBUs: 19955

Total Number of Dimensional Variations: 41

Figure 36. Example of shower PBUs size distribution based on length.

Most repeated length close to the average value in this range: 1600

Powder POD - Quantity distribution

Total Number of Powder PODs: 6997

Total Number of Dimensional Variations: 11

Most repeated length close to the average value in this range: 1800

Internal Length

Figure 37. Example of powder PBUs size distribution based on length.
Figure 38. Examples of shower and powder PBU layouts.

have mirrored versions, making a total of four variations for a fixed size.

In line with Sobha’s backward integration strategy, the standardization of PBU dimensions and key components, including ceilings, access panels, tiles, vanities, and sanitaryware, enabled greater control over upstream design and manufacturing processes. By analyzing past project data and defining practical standard sizes and variations, the PBU team ensured cost efficiency and repeatability across multiple projects. To facilitate consistent implementation, a digital system was developed allowing architects to select standard PBU models or request bespoke units under predefined criteria. This approach illustrates how Sobha leverages internal process control and standardization to reduce reliance on external suppliers, streamline project delivery, and maintain quality, exemplifying backward integration in practice.

The Impact of Standardization

By standardizing the PBU sizes and minimizing the variations, the design complexity of PBUs was largely reduced. For the initial project where PBUs were used, total typologies (those including all variants) per 1,000 PBUs were 16.62. After implementing the standardization process, there was a reduction of 90% to 1.28. Also, the ratio of core typologies (those based on PBU sizes only) per 1,000 PBUs was 1.85 before, which got reduced to

0.48. This directly translated to improved design and manufacturing efficiency (see Figure 40).

With standardization, Sobha aims for at least 90% of the PBUs used in new projects to be standard PBUs. Based on current data, the latest three projects have already achieved 100% standardization, which is remarkable. This is expected to have a strong positive impact on mass production at the factory level as well.

With PBU designs now standardized and variations fixed, the Sobha Modular factory can plan production months in advance. Material requirements become predictable, helping with accurate forecasting and procurement. It also enables better reuse of components such as molds, and allows for efficient setup of standard jigs, fixtures, and assembly lines, with the benefit of a design that has been previously implemented and refined. This ultimately helps minimize waste, reduce errors on the factory floor and improve cost control.

This trend is expected to continue with the upcoming projects, which would bring great value in terms of cost efficiency, quality and sustainability.

Enabling the Strategy: Sobha Modular’s Role

The Sobha Modular factory was set up as a strategic move to enable Sobha’s long term modular vision and is fully aligned with Sobha’s backward integration model.

Figure 39. Examples of maid PBU layouts.

Built early on to handle high-volume, high-quality PBU production, it is set to become the core enabler of industrialized construction for Sobha’s upcoming projects and will be one of the largest such facilities in this region.

The factory started operations in December 2022. The first mockup PBU, based on the detailed drawings from

PNCA, was completed by March 2023. Once the mockup PBU got its approval, scaling up was rapid. By April 2024 it had manufactured 5,000 PBUs, meeting the demand for two live projects. By November 2024, the factory was able to achieve the 10,000-PBU milestone at an average of just over 1,000 PBUs per month. In January 2025, PBU production reached a record of 1,324 units

Figure 40. The impact of PBU standardization.

Modular’s PBU Production Volume

Cumulative Production Quantit y Cumulative Delivered Quantity

in a single month, with the total output by the end of February 2025 exceeding 15,000 units. Production has since increased, reaching 1,500 PBUs per month as of July 2025 (see Figure 41).

This remarkable achievement is the result of a well-planned factory setup, supported by continuous process improvements and smart innovations. The Sobha Modular factory is a 250,000 m2 facility with an efficiently designed layout to achieve its full potential. The mini-factory concept within the facility supports the manufacturing of sub-assemblies, which feed into the main assembly line. Dedicated craft centers for tile and marble, high-precision robotic systems for welding and pick-and-place operations, and advanced roll-forming equipment for light-gauge steel framing are examples of Sobha’s approach to delivering high-quality, industrialized construction solutions.

The factory focuses on continuous improvement and encourages innovation. Every process gets thoroughly analyzed for potential improvements, and any comments related to design, and manufacturability are fed back to PNCA, the consultancy arm. This aligns well with the concept of forward integration, as the feedback is implemented at the design stage for upcoming

projects. This is enabled efficiently through Sobha’s backward-integrated business model. Several innovative ideas have already been implemented, with a focus on continuous improvement; for example, the pre-tiled wall panel assembly method has been a breakthrough in streamlining the manufacturing process.

These efforts have helped Sobha Modular reduce the PBU cycle time by 60% and manpower per PBU by around 85%, compared to the initial projects. Further improvements in automation, alternate processes, and usage of alternate materials are planned soon, aimed at further increasing manufacturing efficiency. With a vision to expand into wider modular territories, the factory is expected to be one of the largest and most advanced of its kind in this region, supporting Sobha Realty’s ambition to lead in industrialized construction.

3.2.8. PBU Implementation across Sobha Projects

Sobha has been steadily implementing PBUs across several projects, focusing mainly on residential developments. Since the first project, PBUs have now been planned for more than 20 projects. With thousands of PBUs designed, several thousand manufactured and more than 50,000 PBUs planned as of April 2025, PBUs

Sobha
Figure 41. Sobha Modular’s PBU production volume, May 2023 to January 2025.

Conventional Toilet vs PBU

S. No. Description

1 Conventional toilet readiness from deshuttering

2 PBU shifting & installation at site (after deshuttering of respective slab)

PBU implementation)

have become an integral part of Sobha’s construction strategy. The company has already realized benefits in terms of time and cost efficiency for the initial projects where PBUs have been implemented.

Sobha’s internal project data indicates that the timeline for traditional bathroom completion after de-shuttering of the building (removal of formwork) is approximately 72 days per floor. With the implementation of PBUs, this has been reduced to an average of 12 days, resulting in a direct savings of 60 days per floor, which is an 83% reduction. Also, this does not include the 15-day PBU manufacturing process, which is completed off-site in parallel with the building structural works (see Figure 42).

In addition to the time savings, PBU implementation also helped reduce a lot of on-site activities. Since most of the wet works like plastering, tiling and plumbing are done off-site in a factory, there is less material movement and fewer technicians needed on the site. This makes the work area cleaner and safe (see figures 43 and 44); it also reduces the number of teams involved in the construction of bathrooms onsite, hence making it easier to coordinate. The number of specialist roles like tile masons and waterproofing technicians required on-site also came down.

With fewer trades working at the same time in the same area, coordination issues between teams overlapping at the same location were reduced drastically. Work sequencing became easier, and tasks

Remarks

readiness at factory takes 15 dayes (off-site)

Figure 42. Shows timeline comparison on-site—Conventional bathroom vs PBU.
Figure 43 (top) and 44 (bottom). Modular PBU installation on-site.

like MEP connections and final finishing required less effort to complete.

One of the early examples where this was implemented successfully is in the project Creek Vista Grande located in Sobha Hartland, Dubai. The project was able

to achieve an early handover, eight months ahead of schedule by utilizing a combination of off-site technologies—namely PBUs and MEP modules.22

The first full set PBU drawings were approved in March 2023 and from there, as of April 2025, around 23 residential projects have been planned considering PBUs. Out of these, one project has been handed over, another one is completed and is expecting a handover soon, and two more projects are nearing completion. The total number of PBUs planned is about 52,500, of which around 34,000 have completed the design stage, with approximately 18,000 IFC drawings released by the consultancy arm PNCA. Sobha Modular has been able to manufacture more than 15,000 PBUs to match this rising demand (see Figure 46).

Another significant indicator of Sobha’s progress in PBU implementation is its measurement of PBU yield. It measures the percentage of bathrooms designed as PBUs compared to that of conventional ones in a project. The initial project using PBU, The Crest, achieved a PBU yield value of approximately 86%, as there were still conventional bathrooms built on-site due to design limitations; (see Figure 47) the original building was not designed considering the PBUs. Once the layouts were prepared considering PBUs from the initial stages, the PBU yield started increasing, and all the projects designed with PBUs were able to achieve a PBU yield range between 95 and 100% consistently, with many of the projects achieving an outstanding yield of 100%.

With newer projects demanding faster construction and the entire team now aligned towards PBU implementation and standardization, this trend is expected to continue across upcoming Sobha developments, and the PBUs will continue to contribute a major share in Sobha’s industrialized construction initiatives.

* Planning data is assumed based on early GAs received. Subject to change

Figure 45. Creek Vista Grande—Sobha Hartland, Dubai.
Figure 46. An overview of designed and planned PBU quantities.

3.2.9. Broader Impacts and Future Outlook

Sustainability Gains: Waste Reduction, Emissions and Certifications

Sobha’s large-scale implementation of PBUs across residential projects has begun to demonstrate tangible sustainability benefits, not only through streamlined production, but also through measurable gains in material efficiency, waste control, and alignment with national goals around innovation and energy transition.

With a rising expat population and initiatives like the Sheikh Zayed Housing Program, 23 the demand for faster and more efficient housing is only increasing. This is reinforced by national frameworks like the Dubai Industrial Strategy 203024, which sets out 75 initiatives aimed at transforming the emirate into a global platform for innovation and sustainable manufacturing. Among the strategy’s five objectives, two of them are “Enhance depth of knowledge and innovation (including improved labor productivity)” and to “Promote environmentally friendly and energy efficient manufacturing.” These objectives are naturally supported by off-site systems like PBUs when applied through backward-integrated models such as Sobha’s.

Alongside this, long term goals like the Dubai Clean Energy Strategy 2050,25 aiming to increase clean energy to 75% by 2050 and the Abu Dhabi Environment Vision 2030, underline a shift towards greener systems.

Housing systems that are capable of both reducing the environmental impact during construction and its lifetime such as those with improved thermal performance should be considered. As much as 70 percent of electricity in Gulf is used to power air conditioning.26 In response, the UAE has supported innovations like the “World’s Most Energy-Efficient Residential Air Conditioner” developed by Strata, Hyperganic and EOS, which is said to be 10 times more efficient than current models. According to the International Energy Agency (IEA) (The Future of Cooling), the global stock of air conditioners is projected to grow from 1.6 billion today to 5.6 billion by 2050. This development aligns with the UAE’s broader vision under the “Operation 300bn” initiative to accelerate sustainable growth and position itself as a global industrial hub by 2031. On the other side of this effort lies the need to improve the thermal performance of residential buildings—reducing heat transfer and maximizing energy efficiency at the unit level. In this context, PBUs offer a strong starting point. With their advantages, they contribute directly to these sustainability goals and help lay the groundwork for larger, more integrated modular residential systems in the future.

There have also been major advancements in material technology that support more sustainable construction practices. PBUs show strong potential in this area. Aye et al. concluded that “material consumption is reduced by 78% when switching from conventional reinforced concrete construction to a prefabricated steel structure” (see Figure 48).27

Figure 47. PBU yield trend.

As sustainability gains more global focus, the construction industry has come under scrutiny for its carbon emissions—estimated at 40 to 50 million tons per year which is more than aviation and shipping combined.28 Cement manufacturing alone contributes at least 8% of global CO2 emissions and between 2002 and 2021, the industry’s emissions doubled from 1.4 to 2.9 billion metric tons.29 Steel, while energy-intensive, offers recyclability and can benefit from greener energy sources. As countries including the UAE shift to renewables such as solar and wind farms, the embodied carbon associated with steel sub-structures used in PBUs and other steel-based modular systems is expected to fall further.

According to a joint study by the University of Cambridge and Edinburgh Napier University, modular construction

emits 45% less carbon than traditional methods.30 The study examined two real-world projects in the United Kingdom—the Ten Degrees towers in Croydon and The Valentine student block in Redbridge—which saved a combined 28,000 metric tons of embodied carbon across 900 homes. While these are volumetric modular examples, the same logic applies to PBUs with its repeatable factory output, controlled material uses and minimal on-site waste.

While formal sustainability tracking is still evolving, the experience with PBUs so far has shown measurable improvements in material efficiency and waste control during production. The controlled environment of off-site fabrication has helped minimize construction waste and rework, with consistent use of standardized components contributing to better resource utilization.

Case A Waste Comparison by Structure Element
Foundation Flooring External Walls Internal Walls Roof
Case B Waste Comparison by Structure Element
Foundation Flooring External Walls
Beam System Stairs Roof External Walls Columns
Figure 48. Comparison of potential waste reduction achieved through steel modular construction as compared to conventional concrete methods. Waste comparison by structural element (Loizou 2021, 12).

These early trends indicate that Sobha’s approach is in line with the wider benchmarks seen in modular construction globally.

Vision for Expanding Modular Systems: From PBUs to PPVC

After experiencing success in Sobha projects with the implementation of the PBUs and the company’s Mission 70-70 directive to achieve 70% of building works off-site, with 70% of that being automated, the logical pathway to achieve this leads to full modular construction. PBUs have already demonstrated benefits in standardization, speed and factory control, laying the foundation for expansion.

Mid-to-high-rise structures offer the best opportunity to scale this further, where repetition of units allows for efficient integration of full volumetric modules. At the same time, Sobha is exploring the application of PBUs in villa projects, especially where consistent layouts and high volumes exist. The team is also working on developing utility and kitchen pods, extending the modular approach further. These additions are expected to increase off-site scope, which is in alignment with the company’s goals.

Together, these initiatives lead naturally to the adoption of Prefabricated Prefinished Volumetric Construction (PPVC) systems. As project volumes grow, PPVC will become essential to meet delivery timelines, ensure quality and to support Sobha’s long-term industrialized construction strategy.

With the success achieved in the PBU design and implementation through standardization, Sobha plans to apply the same ethos as it embarks on the PPVC journey. By platforming common parts, details, and sizes, our aim is to develop a comprehensive range that meets Sobha’s broader requirements, while enabling efficient manufacturing.

Key lessons from PBUs, such as the value of early design integration, repeatable configurations, and controlled flexibility are now guiding the modular expansion. These principles are being extended to volumetric modules, where standardized layouts and coordinated services become even more critical.

Moving forward, the focus is also shifting towards productization—treating modular assemblies not just as project-specific solutions, but as repeatable products with defined interfaces, performance benchmarks, and manufacturing-ready design packages. This shift supports scale, faster decisionmaking, and better alignment between design, procurement, and execution.

The variation within standardization strategy remains central, allowing consistency across projects while offering flexibility where needed. With this approach, Sobha aims to develop and scale its modular systems effectively, using the PBU experience as a foundation for faster adoption, fewer iterations, and better alignment across design, manufacturing, and site execution.

3.3 Sobha One: Sustainable Certification

In December 2024, Sobha One was awarded the prestigious Green Mark Platinum Super Low Energy (SLE) certification by Singapore’s Building and Construction Authority (BCA). This milestone achievement made Sobha One the first building outside Singapore to earn this distinction.

In addition to the SLE certification, Sobha One was recognized with the Whole Life Carbon badge as a testament to the project’s dedication to low-impact development and eco-conscious design.

The Green Mark certification is a globally recognized benchmark for environmental resourcefulness, assessing projects across five critical categories: Resilience, Whole Life Carbon, Health and WellBeing, Intelligence, and Maintainability. Sobha One’s innovative design delivers best-in-class energy performance, achieving an impressive 60 percent energy savings compared to 2005 standards.

This achievement reflects the meticulous attention to quality, climate-friendly leadership, and design excellence that characterizes every Sobha Realty development. Leveraging its unique Backward Integration model, Sobha Realty maintains complete control over the development process, integrating

advanced technologies such as Computer-Aided Facility Management (CAFM), Common Data Environment (CDE) platforms, digital twins, and predictive maintenance dashboards. These innovations drive energy efficiency, resources optimization, and longterm operational performance. The project further aligns with the climate risk assessments and the TCFD framework, supporting UAE’s Net Zero goals by 2050.

In addition to the above, Sobha’s projects are pursuing multiple sustainability certifications with a keen focus on energy, water, embodied carbon and circularity; those which are of great significance to the region. By pursuing these strategies, Sobha is on track to ensure that the buildings that are designed with sustainability truly perform and deliver the results.

Figure 49. Sobha One, Dubai, received a Singapore BCA Green Mark award in 2024, the first building outside of Singapore to do so.

As urban environments face increasing pressure to deliver projects that are fast, high-quality, and sustainable, the limitations of fragmented development models have become increasingly apparent. This white paper has outlined how Sobha Realty’s fully integrated approach anchored in both backward and forward integration, offers a compelling alternative that addresses these long-standing inefficiencies (see Figure 50).

By internalizing critical functions such as architecture, master planning, engineering, construction, and specialized manufacturing, Sobha reduces dependence on external agencies, achieving greater consistency, control, and efficiency. Simultaneously, its forward integration into sales, customer care, community management, and post-delivery services enables the organization to maintain brand integrity, optimize customer experience, and generate long-term value for residents and stakeholders alike.

The case study of Sobha Hartland II and exemplary initiatives like the Siniya Island launch strategy, prefabricated modular solutions, and sustainability-led projects such as Sobha One demonstrate the practical benefits and scalability of this integrated approach. Across every touchpoint from speed of execution and quality assurance to sustainability targets and customer feedback loops the integrated model has proven capable of delivering measurable improvements over conventional development frameworks.

In consolidating functions that are typically disaggregated across the real estate lifecycle, Sobha’s model enables not just operational excellence but also

From concept to better communities, integration makes it possible. 360 DEGREES

strategic alignment across design, delivery, and longterm use. The outcome is a more resilient, adaptable, and customer-centric form of real estate development that can serve as a benchmark for industry-wide transformation.

This study ultimately positions vertical integration not only as a competitive advantage for individual developers but as a replicable, future-ready framework for the global real estate industry particularly in an era where speed, sustainability, and systemic coherence are no longer optional but essential.

Figure 50. Integration from concept to community: illustrating backward, forward, and 360° loops in real estate.

Bibliography

1. Construction Week Online (2025). “Sobha Realty Achieves Record-Breaking $6.3bn Sales in 2024.” Construction Week Online. January 21, 2025. https://www.constructionweekonline.com/news/ sobha-realty-achieves-record-breaking-6-3bn-sales-in-2024

2. Sobha Realty (2025). “Sobha Realty Records Historic AED 23 Billion in Sales for 2024.” Sobha Realty. January 21, 2025. https://sobharealty.com/media-center/press-releases/ sobha-realty-records-historic-aed-23-billion-in-sales-for-2024/

3. Balachandran, M. (2024). “Inside Sobha Group’s Ambitious Plans: From Dubai to Mumbai at the US.” Forbes India, July 17, 2024. https://www.forbesindia.com/article/billionaires/ inside-sobha-realtys-ambitious-plans-from-dubai-to-mumbai-and-the-us/93647/1

4. Loizou, L. 2021. Quantifying Advantages of Modular Construction (PDF), 14.

References

1. Data sourced from Sobha Realty corporate communications and sales performance reports, 2024. Ranking information based on internal market analysis and publicly reported figures from UAE Real Estate Developers.

2. John Macomber and Alpana Thapar, Sobha Group Real Estate: Backward Integration for Quality, Harvard Business School Case 219-034 (September 2018; revised January 2019)

3. REIDIN. “Real Estate Information Data Analytics.” REIDIN, accessed August 2025, https://reidin.com/. Data provided via Sobha Marketing MIS team.

4. Great Place to Work Middle East, Top 10 Best Workplaces in the UAE 2024, Great Place to Work Middle East, Dubai, 2024. Available at: https://greatplacetowork.me/best-list/best-workplaces-in-uae-2025/

5. Manu Balachandran, “Inside Sobha Realty’s Ambitious Plans—from Dubai to Mumbai and the US,” Forbes India, July 6, 2024, https://www.forbesindia.com/article/billionaires/ inside-sobha-realtys-ambitious-plans-from-dubai-to-mumbai-and-the-us/93647/1

6. Sobha Realty, 30th CAP^Q MIS Residential – As on 31 Jan 2025, Quality & Technology (QT) Department, internal document, updated February 13, 2025

7. Sobha Realty, 30th CAP^Q MIS Residential – As on 31 Jan 2025, Quality & Technology (QT) Department, internal document, updated February 13, 2025

8. Chief Project Control Officer (CPCO), Sobha Construction Department, Benchmark Analysis of Residential Projects Completed January 2020–May 2023 (internal analysis, 2023), data sourced from Dubai Government portal.

9. McKinsey & Company, Delivering on construction productivity is no longer optional, 2024, https://www.mckinsey.com/ capabilities/operations/our-insights/delivering-on-construction-productivity-is-no-longer-optional

10. Ibid.

11. Sobha Constructions, Sobha Ideas, accessed August 2025, Idea Space, Sobha Ideas is an initiative that motivates employees to generate and share ideas, fostering a culture of innovation and continuous organizational improvement.

12. Computer-Aided Facility Management (CAFM) systems help manage building operations digitally (e.g., maintenance schedules, asset performance, occupancy data). Common Data Environment (CDE) is a centralized digital platform where all project information is stored and shared in real-time among stakeholders (design, construction, FM teams, etc.).

13. Customer Care Cell - A separate team which looks after issues that arise in a unit such as leaks, cracks etc during the DLP period i.e. Defect Liability Period which is 1 year from the date the unit has been handed over.

14. Modular Building Institute, Saving Time with Modular Bathroom Pods (2017), accessed August 2025, https://nibs.org/ wp-content/uploads/2025/04/MI_OSCC_BathroomPods_2017.pdf

15. Mohsen Miri and Gholamreza Khaksefidi, Cost Management in Construction Projects: Rework and Its Effects (2015), accessed August 2025, https://www.researchgate.net/ publication/291000555_Cost_Management_in_Construction_Projects_Rework_and_Its_Effects

16. NY Engineers, Modular Construction: A Sustainable Building Method, accessed August 2025, https://www.ny-engineers. com/blog/modular-construction-a-sustainable-building-method

17. Aye, L., R. Ogunlana, and S. W. Lim, “Minimizing Construction Waste Through Off-site Production and Centralized Batching”, Resources, Conservation & Recycling 56 (2011), accessed August 2025, https://www.sciencedirect.com/science/article/abs/ pii/S0378778811005950

18. Sophie Metcalfe, How Government Can Build More Homes (Institute for Government, August 2024), accessed August 2025, https://www.instituteforgovernment.org.uk/sites/default/files/2024-08/How-government-can-build-more-homes_0.pdf

19. UK Government, Housing Supply: Net Additional Dwellings, England 2022 to 2023 (updated 2023), accessed August 2025, https://www.gov.uk/government/statistics/housing-supply-net-additional-dwellings-england-2022-to-2023/ housing-supply-net-additional-dwellings-england-2022-to-2023

20. UK Energy Research Centre, Modern Methods of Construction (MMC) for Net Zero Housing: Implications from the Social Sciences and Humanities, Department for Communities and Local Government (2021), accessed August 2025, https://ukerc. ac.uk/publications/ modern-methods-of-construction-mmc-for-net-zero-housing-implications-from-the-social-sciences-and-humanities/

21. Hadley Group, HGD SFS vs. Blockwork Cost Report (2019), accessed August 2025, https://www.hadleygroup.ae/wpcontent/uploads/2020/04/HGD-SFS-vs-Blockwork-Cost-Report-v1.pdf

22. Khaleej Times, “Sobha Realty to Deliver Creek Vista Grande Ahead of Schedule,” accessed August 2025, https://www. khaleejtimes.com/business/sobha-realty-to-deliver-creek-vistas-grande-ahead-of-schedule

23. Ministry of Energy and Infrastructure, United Arab Emirates, Sheikh Zayed Housing Program, accessed August 2025, https:// www.moei.gov.ae/en/about-ministry/sheikh-zayed-housing-program

24. Government of Dubai, Dubai Industrial Strategy 2030, accessed August 2025, https://u.ae/en/about-the-uae/strategiesinitiatives-and-awards/strategies-plans-and-visions/industry-science-and-technology/dubai-industrial-strategy2030#:~:text=In%20June%202016%2C%20Sheikh%20Mohammed%20launched%20Dubai%20Industrial,serve%20as%20 the%20foundation%20for%20Dubai%27s%20industrial%20future

25. Government of Dubai, Dubai Clean Energy Strategy 2050, accessed August 2025, https://u.ae/en/about-the-uae/strategiesinitiatives-and-awards/strategies-plans-and-visions/environment-and-energy/dubai-clean-energy-strategy

26. James Langton, “How Air Conditioning Changed Life in the UAE,” The National, May 27, 2022, https://www. thenationalnews.com/weekend/2022/05/27/how-air-conditioning-changed-life-in-the-uae/

27. L. Aye, “Life Cycle Greenhouse Gas Emissions and Energy Analysis of Prefabricated Steel Structures,” Journal of Construction and Building Materials, 2012, https://www.sciencedirect.com/science/article/abs/pii/S0378778811005950

28. Tom Lowe, “Ministers ‘distracted’ from net zero goals by lockdown parties row, government told,” Building.co.uk, February 1, 2022, accessed August 2025, https://www.building.co.uk/news/ministers-distracted-from-net-zero-goals-by-lockdownparties-row-government-told/5115865.article

29. InsideClimate News, Concrete Is Worse for the Climate Than Flying—Why Aren’t More People Talking About It?, June 24, 2022, accessed August 2025, https://insideclimatenews.org/news/24062022/ concrete-is-worse-for-the-climate-than-flying-why-arent-more-people-talking-about-it/

30. Housing Today, “Modular construction emits 45 % less carbon than traditional methods,” accessed August 2025, https:// www.housingtoday.co.uk/news/modular-construction-emits-45-less-carbon-than-traditional-methods/5117780.article

About the Author

Maida has extensive experience working with multidisciplinary teams in master planning, architecture, and design strategy. Her work emphasizes the integration of user-centric design, regulatory alignment, and operational efficiency within complex real estate projects and communities. Prior to joining PNCA, she served as a Senior Research Analyst in government initiatives in Singapore, Abu Dhabi, and Pakistan, contributing to urban planning, real estate, and community living projects. She is the lead author of this white paper, drawing on her expertise in project integration, construction performance, and strategic planning. Her previous work, Top 50 Smart City Governments— Eden Strategy Institute x OXD, was presented at the World Cities Summit in Singapore and contributed to international discussions on urban systems and strategic frameworks.

About the CTBUH

The Council on Tall Buildings and Urban Habitat (CTBUH) is the world’s leading resource for professionals focused on the inception, design, construction, and operation of tall buildings and future cities. Founded in 1969 and headquartered at Chicago’s historic Monroe Building, the CTBUH is a not-for-profit organization with an Asia Headquarters office at Tongji University, Shanghai; a Research Office at Iuav University, Venice, Italy; and an Academic Office at the Illinois Institute of Technology, Chicago. CTBUH facilitates the exchange of the latest knowledge available on tall buildings around the world through publications, research, events, working groups, web resources, and its extensive network of international representatives. The Council’s research department is spearheading the investigation of the next generation of tall buildings by aiding original research on sustainability and key development issues. The Council’s free database on tall buildings, The Skyscraper Center, is updated daily with detailed information, images, data, and news. The CTBUH also developed the international standards for measuring tall building height and is recognized as the arbiter for bestowing such designations as “The World’s Tallest Building.”

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About the CTBUH Tall + Urban Innovation Program Partnership

Program partnerships are year-long collaborations that foster a shared commitment to shaping the future of global urban development. Partner companies support CTBUH’s influential research and publications, reaching a global audience committed to the future of urban innovation. We thank our program partner, PNC Architects / Sobha Realty, for their support:

About PNC Architects | Sobha Realty

PNC Architects is a multidisciplinary design consultancy established in 2011 as part of the Sobha Group. Headquartered in Dubai, United Arab Emirates, the firm brings together over 900 skilled professionals across various disciplines, offering comprehensive services in architecture, master planning, interior and landscape design, structural and MEP engineering, façade, POD design and infrastructure planning. The firm operates in close synergy with Sobha Realty, its parent company and a well-established luxury real estate developer with a presence in the UAE, Oman, and India.

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Phone: +1 312 283 5646

Email: academic@ctbuh.org

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