Emaar, a global property developer, reported a 241% increase in first-quarter net profit to Dh2.239 billion, up from Dh657 million in the same quarter of 2021, thanks to strong property sales.
The success, according to the property giant, demonstrates sustained confidence in the Emaar brand as well as the broader revival of Dubai’s economic activities, led by the real estate market.
Revenue increased by 12% to Dh6.635 billion in the first quarter of 2022, compared to Dh5.921 billion in the same time of 2021.
The Dubai Financial Market-listed business said in a statement that group property sales climbed by 17% to Dh8.332 billion in Q1 2021, compared to Dh7.115 billion in Q1 2021.
Emaar Properties’ founder, Mohamed Alabbar, stated that the developer improved its market share in key regions such as Egypt and India, harnessing the high growth in demand in these nations.
“Going forward, Emaar will also continue to capitalize on the very attractive supply and demand dynamics in hospitality and shopping malls, which have recorded a solid performance in the first quarter of this year. This achievement is reinforced by the steps we took last year to strengthen the foundation of the business, including making a significant investment in our talent across all areas,” said Alabbar.
He believes Emaar is in a good position to execute its clearly stated plan and deliver attractive and long-term profits for all stakeholders.
“Such success is a mere testament to the UAE’s leading economic position propelling all businesses, ours included, from strength to strength. The future growth and long-term shareholder value will be defined by digital transformation, new product innovation, and market penetration.”
At the end of Q1 2022, the developer had a property sales backlog of Dh45.24 billion, which will be recognized as revenue in the future, demonstrating “the strength of Emaar’s financial position to preserve high revenue, profitability, and shareholder return in the foreseeable future.”
Emaar Development, the UAE’s build-to-sell property development business, which is majority-owned by Emaar Properties, maintained strong property sales momentum in Dubai during the first quarter of 2022, with Dh6.843 billion in sales, up 16 percent from Dh5.883 billion in Q1 2021.
Emaar Development reported a net profit of Dh1.050 billion in the first quarter of 2021, up 34% from the previous quarter, and revenue of Dh3.568 billion. In 2021, the developer claimed its highest-ever home sales of Dh27.440 billion, up 335 percent from 2020. Over 4,700 residential units were produced by Emaar Development in 2021 in excellent locations such as Dubai Hills Estate, Dubai Creek Harbour, Downtown Dubai, Dubai Marina, Emaar South, and Emaar Beachfront. Emaar has produced over 52,000 residential units as of December 2021, with over 24,500 dwellings currently under construction in the UAE.
Emaar’s international real estate activities continued to improve their operational results in Q1 2022, with property sales of Dh1.474 billion compared to Dh1.211 billion in Q1 2021, a 22% increase over 2021. This reflects the improving real estate market and the growing interest in Emaar’s international expansions and reputable master developments.
Emaar’s overseas property development businesses generated Dh989 million in sales in Q1 2022, accounting for 15% of the company’s overall revenue, thanks to robust operations in Egypt and India.
Emaar Malls Management, Emaar Properties’ shopping malls, and retail arm saw a 36% increase in revenue in Q1 2022 compared to the same period last year, hitting Dh1.235 billion. Overall net profit for the first quarter of 2022 was Dh635 million, up 136% from the first quarter of 2021. Emaar Malls Management assets boosted their leasing occupancy levels to 93 percent, with record tenant sales in The Dubai Mall, surpassing even 2019 numbers. Emaar Malls Management also opened Dubai Hills Mall in Q1 2022.
Emaar’s hospitality, leisure, entertainment, and commercial leasing businesses generated revenue of Dh843 million in Q1 2022, up more than 120 percent from Q1 2021, with average occupancy levels of 80 percent at Emaar Hospitality Group hotels in the UAE, including its managed hotels, thanks to a strong recovery in the GCC tourism sector.
In February 2022, Emaar Entertainment will open Adventure Park, an indoor kids’ play area, and The Storm Coaster, a world-record-breaking indoor rollercoaster, at the Dubai Hills Mall.
Malls, hotels, leisure, entertainment, and commercial leasing contributed Dh2.078 billion to Emaar’s overall revenue, up 62 percent from the same time the previous year and accounting for 31% of the company’s total income.