Latest news with #modularconstruction
Zawya
13-06-2025
- Business
- Zawya
Backward integration drives Sobha Realty's expansion and project efficiency
Backed by more than four decades of engineering and real estate expertise, Sobha Realty stand out in the UAE's highly competitive property market through its fully backward-integrated model. 'Sobha Realty is the first developer to pioneer this business model in the UAE, and the only major real estate player that is fully backward integrated in the region,' said Francis Alfred, Managing Director of Sobha Realty. 'This is spearheaded by Sobha Modular Industries and complemented by an integrated operational network. The luxury developer adopted a strategic approach by identifying key construction bottlenecks—such as bathrooms, MEP (Mechanical, Electrical, and Plumbing) modules, facades, and other critical elements. These insights formed the basis of the backward-integrated model, allowing for greater control, efficiency, and scalability. 'Our rapid success in implementing these technologies has paved the way for expanding modularisation across more areas of the construction process,' said Alfred, who is helming the company's evolution towards factory-based modular construction, sustainable building methods, and end-to-end operational self-sufficiency. 'Modular construction is rapidly emerging as the new norm, and we believe it will become mainstream in the near future,' he noted. Alfred said the company is currently testing volumetric modular construction, which will allow it to offer fully modular solutions for various geographies. 'As building codes and approvals for modular construction continue to evolve in the UAE, we are optimistic about the prospects of fully modular buildings,' he said. He added that the company continues to invest in research, prototyping, and capability-building to manufacture and deliver complete modular solutions. On the business front, the company is expanding its footprint both within the UAE and internationally. Following its successful entry into the Umm Al Quwain (UAQ) emirate with the launch of Sobha Siniya Island in 2024, Sobha Realty announced its next phase of expansion through the new Downtown UAQ project. 'Furthermore, we are entering the Abu Dhabi market as part of our commitment to shaping the UAE's luxury real estate landscape,' stated Alfred. 'On the international front, we have already expanded in key global markets, including the U.S. and Australia, as part of our long-term growth vision.' He credited Sobha Realty's fully backward-integrated model as a key enabler of the expansion, providing greater control over quality, cost, timelines, and environmental impact throughout the development cycle. 'We have always built and maintained our integrated ecosystem in the markets we operate, and we will follow the same approach as we grow into new regions,' he emphasised. Alfred also highlighted Mission 70:70, Sobha Realty's initiative to transform construction execution in the region by automating repetitive tasks and enabling skilled professionals to focus on high-value work. 'We aim to shift 70 percent of on-site work into a controlled factory environment by developing innovative offsite products,' he explained. 'This transition will enhance precision, improve quality, boost efficiency, scalability, and accelerate project timelines.' The second '70' focuses on optimising the workforce within the company's factories through lean manufacturing and automation. 'In a conventional setup, 100 workers may be required to run operations, but under Mission 70-70, we will operate with just 50,' he noted. 'We've already witnessed a remarkable impact through Sobha Modular, and with Mission 70-70, we are poised to expand this impact across multiple domains—driving large-scale change and setting new industry benchmarks.' Interview excerpts: Sobha has clearly invested heavily in its backward integration model. What are the key performance indicators (KPIs) you use internally to assess the success and efficiency of this model over time? At Sobha Realty, our backward integration model is central to our commitment to delivering exceptional quality and value. To evaluate its effectiveness, we monitor several key performance indicators: • Project Delivery Timelines: We track the adherence to project schedules, aiming for early or on-time completions. Thanks to our backward integration model, our projects are delivered on time as per the original project delivery plans. • Quality Assurance Metrics: We assess the quality of our projects through internal audits and customer feedback. At Sobha Group, we use German capabilities across our quality control team to ensure that all our projects adhere to and exceed the highest standards, both on the market level and internationally. • Customer Satisfaction: We regularly survey our clients to identify satisfaction levels, focusing on aspects like build quality, design, and overall experience. • Sustainability Benchmarks: Our commitment to sustainability is measured through rigorous certifications and assessments. Sobha One recently received the Middle East's first Green Mark Platinum Super Low Energy (SLE) certification from Singapore's Building and Construction Authority (BCA). It has also been awarded the Whole Life Carbon badge, underscoring the project's dedication to low-impact development and eco-conscious design. Several other projects are currently pursuing LEED certifications across various rating systems. Sobha Realty achieved an impressive score of 91 in the 2024 Annual GRESB ESG Assessment, marking a significant improvement from its 2023 score of 72. With backward integration comes a higher fixed cost base and greater CAPEX exposure. How does Sobha de-risk its model financially during periodic downturns in the real estate market? Real estate development is not an isolated industry, it requires extensive network support and supply chain related to different industries, including steel, glass, façades among many others. Sobha Realty recognises that connecting multiple industries with the real estate industry can carry some exposure to market fluctuations. However, our backward integration strategy is built with long-term resilience in mind. Each vertical within our ecosystem is established not only to support internal demand, but also to have the potential to operate as an independent profit centre. This reduces dependency on a single revenue stream and opens up opportunities to serve external markets. While the model is capital intensive, it allows us to keep liquidity within the group, streamline payment terms, and gain significant intangible benefits across the supply chain. Moreover, our fixed costs and capital expenditure are carefully planned based on projected volumes and long-term savings. We are also developing a 5–10-year roadmap for each business vertical to ensure diversification and greater protection against sector downturns. Many developers are still reliant on third-party contractors despite the risks. Why do you think the industry has been slow to adopt backward integration, and how does Sobha's model offer a sustainable long-term edge? Shifting to a backward integration model is a strategic move that requires extensive planning and investment from real estate developers. It involves high capital investment, careful operational planning, and expertise across various domains. Thanks to our backward integration model, we ensure: • Quality Control: Full oversight of design, materials, and construction ensures top-tier standards. Our quality efforts are spearheaded by German Master Craftsmen to ensure German quality — the golden standard in the real estate industry. • Timely Delivery: Sobha Realty's model eliminates delays originating from external suppliers' failure to meet delivery timelines. The latest example is the early handover of Creek Vistas Grande in Sobha Hartland, where residents received their keys six months ahead of schedule. • Innovative Designs: In-house capabilities enable unique, custom-built developments. Sobha Group proudly employs over 500 in-house designers and architects. • Sustainability: We ensure green building practices throughout our supply chain. • Backward integration also protects our operations from global supply chain disruptions and inflationary pressures. By relying on our in-house manufacturing units, we reduce dependency on external vendors and service providers. We leverage locally available raw materials and operate within a self-sufficient supply ecosystem. As a result, we ensure uninterrupted progress and deliver projects on schedule, all while upholding the highest standards of quality. With over 40,000 workers under direct employment, how does Sobha manage labour productivity and cost optimisation without compromising on quality or timelines — particularly during market slowdowns or lean phases? At Sobha Realty, we recognise that an evolving workforce and rapid technological advancements require forward-thinking solutions that enhance efficiency and drive engagement. Our people-driven initiatives leverage smart technology to streamline processes, upskill employees, and create a seamless work experience. In line with our commitment to continuous learning and professional growth, we have introduced the Sobha Skill Hub, our proprietary learning management system. This platform offers a wide array of courses and training modules, ensuring employees have access to relevant learning resources that help them develop critical skills and stay ahead in the industry. These efforts, coupled with our constant drive to engage and motivate our people, help us maintain our competitive edge in terms of quality and delivery across business cycles. As a testament to our efforts, Sobha Realty has been re-certified as a Great Place to Work for 2025–2026, and this recognition is a reflection of what we hold most dear: our people. How does Sobha Realty embed sustainability into its developments? Sobha Realty's robust backward integration ensures seamless communication and consistent sustainability messaging across all entities. This approach enables the development and implementation of optimal designs that deliver maximum sustainability impact. Our in-house development, design, construction, and FM teams lay the foundation for sustainability standards at the early stage of every project, which result in high performance and climate-resilient developments and masterplans. All new developments within Sobha Realty's portfolio – including the masterplans – are pursuing global green building certifications, by embracing a judicious blend of active and passive strategies, including energy efficient designs and technologies, water saving solutions, as well as cutting-edge indoor air quality and HVAC systems. Each development reflects a deep respect for the environment by thoughtfully integrating both mitigation and adaptation measures. Currently, more than 25 upcoming projects are pursuing green building certification, and all future projects and masterplans are well positioned to achieve the highest levels of sustainability. The use of sustainable materials, low-carbon technologies, and an effective waste management system contributes to circularity in our construction processes and aligns with the UAE's circular economy policies. Our backward integration model targets the completion of 70 percent of site-related works at the factories, which significantly reduce the environmental footprint of each project. For example, our Sobha Modular Facility minimised on-site impact by delivering ready-to-install aluminium facades and bathroom pods. This approach not only reduces waste and material transport from multiple locations to the construction sites, but also positively contributes to the Whole Life Carbon footprint of our developments. (Reporting by Rajiv Pillai; Editing by Anoop Menon) (
Wall Street Journal
02-06-2025
- Business
- Wall Street Journal
The Rush to Take Modular Homes Mainstream in Disaster-Ravaged Areas
After Jerry Camarillo's childhood home in Altadena, Calif., burned down, he was determined to rebuild the one-story, midcentury ranch house exactly as it was before the Los Angeles wildfires. That all changed with one look at the home's insurance policy, which would cover only a fraction of the $700,000 estimated cost to rebuild. Then he stumbled across Hapi Homes, a company that builds prefabricated homes as pieces in factories and then assembles them on-site. The company said it could build a home for $200,000 less than the cost of traditional construction, and do it in less than half the time. The new home would look and feel the same as it did before the fire, Hapi Homes pledged. Camarillo was sold. 'This makes rebuilding possible,' he said. Companies that use modular construction, 3-D printing or other nontraditional methods have existed for decades on the fringe of home building, often tainted by an association with lower-quality construction and previous missteps. Now, these companies are trying to break into the mainstream by offering a faster and less costly alternative for rebuilding in cities ravaged by natural disasters. Many of the thousands of displaced homeowners in Los Angeles, Hawaii and the Southeast are giving these businesses a look. Victims of hurricanes, wildfires or other disasters can be desperate to rebuild, but their insurance payouts are often well short of what is needed to cover traditional construction costs. 'Homeowners in a moment of crisis want to try something different,' said Jason Ballard, chief executive of ICON, a company that makes 3D-printed homes. ICON uses giant 3-D printers to squeeze layers of concrete into the framing for a house. The company received hundreds of calls about building projects in disaster-prone areas, including from Los Angeles homeowners and developers after this year's fires, Ballard said. Now, the Texas-based company is rearranging its expansion strategy to target disaster-prone markets such as California and Florida. Modular builder Samara is working with billionaire developer Rick Caruso's rebuilding nonprofit, Steadfast LA, to offer dozens of free modular homes to low-income residents who lost their homes in the Los Angeles fires. And the Los Angeles Mayor's office is having conversations with more than a dozen alternative builders to explore nontraditional construction options. 'Disasters are actually going to be the turning point' for the wider adoption of factory-built housing, said Vikas Enti, chief executive of Reframe Systems. 'That's what we're betting on.' Enti's Massachusetts company builds homes in robotic, artificial-intelligence-powered microfactories. It is planning to build a California microfactory 18 months earlier than initially scheduled, he said, and to hire local Los Angeles employees to meet the postwildfire demand. Offsite-factory construction can accelerate the building process because fewer workers are required and materials are often purchased in bulk. The shorter timeline can sharply reduce carrying costs for a project. And in disaster areas, where many builders are competing for construction labor and materials, factory-home manufacturers have an edge because they can access less crowded supply chains in other cities and states. After the 2023 wildfires in Maui, Hawaii, more than 100 modular companies flooded the Hawaiian market. State officials alongside the housing nonprofit HomeAid Hawaii commissioned five modular vendors to help build 450 temporary housing units for displaced residents. None of these modular companies had worked in Hawaii previously. But their emergency entrance into the market has made Hawaii's public officials more open to alternative competitors. 'As a public official, I'm now saying, 'Hey, we do have alternatives to typical construction,' ' said Joseph Campos II, deputy director at Hawaii's Department of Human Services. 'There can be a partnership with traditional construction trades.' That is a stark pivot from the decadeslong reputational problems plaguing the alternative-building industry. Off-site factory home construction has historically been used for lower-budget homes, leaving many people with the preconception that it tends to be of lesser quality. That stigma has been compounded by high-profile failures. 'Large companies have come out with really big promises,' said Michelle Boyd, the chief strategy officer at Terner Labs, a housing research nonprofit affiliated with the University of California, Berkeley. 'And then they go belly-up.' In 2021, the tech construction startup Katerra filed for bankruptcy after raising nearly $3 billion from a host of notable backers such as SoftBank Group. Katerra vowed that it could use manufactured construction to turn home-building into a 30-day, assembly-line process. But the company had yet to figure out the nuts and bolts of that mass production before committing to projects. Some alternative builders are going to great lengths to rehabilitate their image. Hapi Homes, for example, invited Camarillo to tour the company's Utah factory that helped close the sale. 'I had to go see if this was real or just a scam,' he said. Still, the problems of alternative building stretch beyond a bad rap. Expanding these businesses to a national scale is difficult because of the expensive transportation costs that come with shipping entire homes from one place to another. Home builder Williams Rebuild, which intends to build between 120 and 150 homes a year for Los Angeles wildfire victims, is exploring whether building wall panels in a factory could help reduce the materials that need to be stored on-site, said Dan Faina, the company's president. 'If not at major scale, it definitely won't be cheaper' than building homes in bulk on-site, he said. 'I think the adoption rate is going to be substantially less than the excitement that's going behind it.' SoLa Impact, an affordable-housing developer based in Los Angeles, is supporting state legislation to expedite approvals for modular housing. SoLa CEO Martin Muoto said the acute housing shortage exacerbated by the wildfires could boost support. 'Never let a crisis go to waste,' he said. Write to Rebecca Picciotto at and Nicole Friedman at
Zawya
27-05-2025
- Business
- Zawya
AHOYmodz partners with Starbucks to launch its first modular drive-thru concept in Dubai
Dubai, UAE – In a bold move that redefines how retail spaces are built in the region, AHOYmodz, the modular construction arm of wheelsAHOY, has partnered with Starbucks to deliver the coffee brand's first-ever modular drive-thru outlet in Dubai. Located in Jumeriah Beach Road, the project was completed in just 40 days, setting a new benchmark for speed, innovation, and sustainability in the retail space. This collaboration with Starbucks signals a shared commitment to innovation and efficiency. By embracing modular construction, Starbucks is exploring new avenues to expand its footprint in a way that is faster to deploy, environmentally conscious, and operationally seamless. 'This isn't just about building differently, it's about building smarter,' said Nithin Mathew, Co-Founder and Head of Business Development at AHOYmodz. 'Partnering with Starbucks on their first modular unit in Dubai highlights how leading brand s are rethinking physical infrastructure to stay future-focused, efficient, and sustainable.' The new outlet is built using prefabricated modules and designed with complete functionality in mind — including a full back-of-house, drive-thru operations, and dedicated zones for storage, equipment, and waste management. With its clean, modern design and compact footprint, the modular store is suited to a variety of urban and suburban environments, enabling brands to scale quickly without compromising on quality or experience. Sustainability is at the heart of AHOYmodz's modular approach. Through the use of recyclable materials, precision fabrication, and reduced on-site disruption, modular construction helps brands lower their carbon footprint while improving long-term operational efficiency. The structure's insulation and material choices also address the UAE's harsh climate by delivering superior thermal performance and durability. 'Our approach helps future-proof retail brands, making expansion not just faster, but also more resilient and responsible,' added Mathew. ' We believe this collaboration with Starbucks sets the tone for a new generation of retail infrastructure in the Middle East.' AHOYmodz continues to work with forward-thinking companies across industries to deliver plug-and-play spaces that can adapt to evolving consumer and market demands. As more brands look to blend speed, sustainability, and scalability, modular construction is quickly becoming the preferred model for next-gen growth. About AHOYmodz AHOYmodz is the modular construction division of wheelsAHOY, delivering high-performance, prefabricated solutions for retail, F&B, logistics, and commercial sectors. Built for speed, sustainability, and smart deployment, AHOYmodz is redefining how space is created across the Middle East. About Sandstone Media Sandstone Media is a forward-thinking PR, media solutions and communications agency based in the UAE that is committed to excellence and offers a spectrum of integrated services, including strategic communications, media solutions and digital innovation. Sandstone Media focuses on the transformative power of storytelling and dedicates its expert team to crafting narratives that resonate and captivate audiences. Website: For more media queries – Rupa Susan Thomas | rupa@
Hospitality Net
23-05-2025
- Business
- Hospitality Net
B&B Hotels Advances Sustainable Building with First Modular Timber Hotel in Germany
B&B HOTELS is set to complete its first hotel using modular timber construction in Neustadt in Holstein by autumn 2025. The project combines modern modular techniques with the restoration of a listed historic building, reflecting a strategic focus on faster, more economical, and environmentally conscious hotel development. Combining modular construction and heritage preservation The new 100-room hotel will be located near the Neustadt train station as a hybrid building that integrates a modern new structure with a revitalized, protected agricultural storehouse. While the ground floor and stairwell core will be built using traditional solid construction methods, the upper floors will utilize prefabricated timber modules. These modules, produced under controlled factory conditions, come fully equipped with insulation, windows, wall finishes, and technical installations, and are transported to the site for rapid assembly. Collaboration with Timber One and sustainable production The hotel project is realized in partnership with Timber One, serving as the general contractor. The timber modules are manufactured by hobb Holzveredlung GmbH, a shareholder in Timber One, using wood sourced exclusively from certified sustainable forestry in Germany. This production process meets B&B HOTELS' rigorous quality and environmental, social, and governance (ESG) standards. Toward efficient and sustainable hotel development B&B HOTELS' Neustadt project is positioned as a model for sustainable hotel construction, leveraging modular timber technology to shorten construction periods, reduce site disturbances, and lower emissions. The project aligns with industry trends seeking environmentally responsible solutions alongside operational efficiency, combining heritage preservation with modern design and construction methods.
Yahoo
20-05-2025
- Business
- Yahoo
CIMC Modular Building Systems Pioneers Sustainable Modular Hotel Construction in Saudi Arabia, Setting a New Benchmark in the Middle East
SHENZHEN, China, May 20, 2025 /PRNewswire/ -- CIMC Modular Building Systems (MBS), a global leader in modular construction, has signed a landmark agreement to deliver the Earth Riyadh Hotel in Saudi Arabia. As the company's first hospitality project in the region, this milestone reinforces CIMC MBS's commitment to advancing sustainable building practices and offering innovative solutions to the global hospitality sector. Setting a New Benchmark for Modular Construction in the Middle East Earth Hotels, a conscious and design-forward hospitality group built for the modern, mindful traveler, is setting the stage for its bold new openings across Saudi Arabia and Europe. The Earth Riyadh Hotel is a three-story, four-star boutique property with a total floor area of 11,000 square meters, scheduled for completion in 2026. Located in the vibrant Al Maathar district near key attractions and the Diplomatic Quarter, the hotel will offer 86 signature rooms, lofts, and suites designed for both business and leisure travelers. More than just a place to stay, Earth Riyadh promises an immersive experience that blends Saudi cultural with laid-back vibes, bold locally inspired designs, and purposeful hospitality. CIMC MBS will provide a full spectrum of services including module design, offsite manufacturing, and on-site installation. This advanced modular construction technology is expected to shorten the construction timeline by over 50% compared to traditional methods, while significantly enhancing resource and energy efficiency. "We are proud to contribute our modular expertise to this landmark project in Riyadh," said Victor Zhu, Managing Director of CIMC MBS. "It reflects our commitment to delivering efficient, sustainable building solutions to partners worldwide." The hotel's developer praised CIMC MBS's proven technical competence and execution capabilities, noting the project as a model for supporting Saudi Arabia's smart city and tourism ambitions. Driving Innovation and Global Collaboration With more than 20 years of international project experience, CIMC MBS has delivered modular building solutions across over 20 countries and regions. The Earth Riyadh Hotel project marks a significant step in the company's global expansion and underscores its role in shaping the future of sustainable construction. This project is expected to play a key role in enhancing Saudi Arabia's tourism infrastructure and serves as a compelling example of international cooperation in the construction industry. View original content to download multimedia: SOURCE CIMC Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
