With revenues of Dh18.4 billion, driven by growth in tourism, stronger retail sales, and increased demand for real estate, Emaar Properties reported a nine-month net profit of Dh8.2 billion, up 42% over the same period the previous year.
Emaar reported group property sales of Dh31.1 billion for the first nine months of 2023, representing a 16 percent year-over-year gain. Consequently, as of September 30, the company’s revenue backlog from property sales was Dh69.5 billion, “indicating robust outlook for revenue recognition in the forthcoming years”, the company stated.
Mohamed Alabbar, Founder of Emaar, said: “With the continued surge in tourism, the launch of attractions like the Dubai Mall Chinatown, and the positive trajectory in property sales, we are honouring our commitment to both our loyal and new customers.
Demand drives sales
“Our financial performance, underscored by recent credit rating upgrades, reflects our strategic investments and their ensuing returns. As we approach the year’s end, we remain confident and focused on further enhancing our operational efficiencies, thereby delivering even more value to our customers and stakeholders.”
A 25% rise in real estate sales helped Emaar Development, a division of Emaar Properties, report a 43% increase in net profit to Dh4.1 billion for the first nine months of 2023. In the first nine months of 2023, it recorded property sales of Dh28.9 billion, up from Dh23.2 billion in the same period in 2022.
Twenty new projects have been launched, according to the property developer, who also said that this is “creating a foundation for future revenue.” Additionally, it disclosed a Dh59.6 billion sales backlog, which will be recognized as revenue in the upcoming years.
Dubai property boom
The number of residential transactions in Dubai reached a record high last year due to a housing boom that has persisted into 2023, with sales exceeding those levels in the first ten months of this year.
According to CBRE Group Inc., the financial and tourism hub of the Middle East saw 93,590 transactions until the end of October, exceeding 92,178 for the entire year 2022. Even then, October sales decreased 23.6% from the same month last year as fewer new off-plan properties were offered by developers.
Since 2022, demand for off-plan developments has increased dramatically; 90% of all homes in desirable and central areas have already been sold. According to CBRE, just over 67% of these homes in the city have also attracted bidders.