Real Estate

Emaar earnings jump 42% on back of real estate demand

By Pramod Kumar

November 10, 2023, 7:56 AM

Emaar Properties, Dubai's largest developer, reported nine-month net earnings of AED8.23 billion ($2.2bn), compared to AED5.79 billion in the same period last year

Net earnings reach $2.2bn
20 new Emirates projects
Transactions amount breaks record

Shares in Emaar Properties were up 4.4 percent in trading on Friday off the back of strong financial results announced for the first nine months of the year.

Dubai’s largest developer reported a 42 percent year-on-year increase in profit on higher property sales and a surge in real estate demand.

The developer’s nine-month net earnings reached AED8.23 billion ($2.2 billion), compared to AED5.79 billion in the same period last year.

Revenue rose three percent to AED18.37 billion in the year-to-September period, compared to AED18.90 billion a year earlier.

Group property sales hit AED31.1 billion for the first nine months of 2023. The company’s revenue backlog from property sales stood at AED69.5 billion as of September 30, 2023, indicating a “robust outlook for revenue recognition in the forthcoming years”.

Mohamed Alabbar, founder of Emaar, said: “As we approach the year’s end, we remain confident and focused on further enhancing our operational efficiencies.”

Emaar maintained strong property sales in Dubai in Q3 2023. The company launched 20 new projects in the Emirates, recording strong property sales of AED28.9 billion, rising 25 percent year on year in the year to September period.

Emaar Development – the developer’s construction unit, which is also listed on the Dubai Financial Market – saw its shares rise by 3.9 percent on Friday.

Revenue backlog from property sales in UAE increased to AED59.6 billion as of September 30, 2023, rising over 60 percent annually.

In the year to October, a total of 93,590 residential transactions were recorded in Dubai, surpassing the 2022 full year total of 92,178, which was the highest total ever recorded in a year until now, according to data from CBRE Middle East.

Taimur Khan, head of Mena research at CBRE in Dubai, revealed that 67.5 percent of off-plan units launched from 2022 to date had been sold. For prime and core markets, this number is north of 90 percent on average.

“The absorption that we have seen within the off-plan segment of the market has been almost unprecedented,” he said.

The number of deals in Dubai’s residential market totalled 6,407 in October, marking a drop of 23.6 percent from the same month last year.

Over the month, off-plan transactions declined significantly by 57.2 percent, whilst secondary market transactions were up 29.5 percent.

In the first nine months of 2023, revenues of Emaar’s shopping malls, retail and commercial leasing operations reached AED4.3 billion.

Emaar’s international real estate operations achieved property sales of AED2.2 billion and recorded revenues of AED2.1 billion in the first nine months of 2023, driven by operations in Egypt and India.

In the first nine months of 2023, Emaar’s hospitality, leisure, and entertainment divisions recorded AED2.5 billion in revenues, achieving a 22 percent growth year on year.

The growth was primarily due to a steady recovery in the tourism industry and strong domestic spending. The UAE hotels, including those under management, saw an average occupancy of 70 percent in the first nine months of 2023.