Real Estate

Tecom profit rises on higher revenue and demand

May 2, 2025, 2:25 PM

Adult, Male, Man — Dubai Design District, part of Tecom Group, held a celebration at the end of April to mark a decade since it opened

Tecom profit up 23 percent
Revenue hits AED680 million
Number of customers up 6%

Tecom Group, a Dubai-based developer and operator of business parks and free zones, reported an increase in net profit for the first quarter, driven by record demand in the emirate’s commercial property sector.

Net profit grew by 23 percent year-on-year to AED361 million ($98 million) during the three months to March led by “improved collections and the strong performance of income-generating assets”, the developer said in a statement on Friday.

Revenue rose 21 percent to AED680 million on the back of higher demand for commercial and industrial space in the emirate.

The number of customers grew 6 percent annually to more than 12,000 in the quarter, “supported by strong demand for commercial, industrial, and land lease assets”, the company said.

Commercial and industrial occupancy rose 4 percent annually to 95 percent, while land lease rose 2 percent year on year to 98 percent by the end of March.

Dubai’s office market, like the wider real estate sector, enjoyed a record year in 2024. With 3,150 sales valued at AED6.8 billion, this represented a 36 percent rise in values and a 7 percent increase in transactions, according to real estate consultancy Cavendish Maxwell.

Average sales and rental prices up almost 25 percent.

“Dubai’s office market continues to perform strongly, supported by sustained corporate expansion and increased levels of foreign investment,” said Vidhi Shah, head of commercial valuation at Cavendish Maxwell.

However, Shah said that a substantial volume of new supply was due for delivery over the next 18-24 months. “Therefore, it will be important to track how this impacts vacancy levels, absorption rates and overall market sentiment,” he said.

About 185,000 square metres of new space is due to come to market this year, with another 230,000sqm next year, meaning Dubai’s total office space inventory will reach almost 9.7 million square metres by the end of 2026.