In the first half of 2023, the Dubai master developer Emaar sold Dh20.2 billion worth of real estate throughout its whole group, helping it to increase its net profit by 15% to Dh4.9 billion.
A large portion of the figures are still being produced as a result of Dubai’s ongoing desire for real estate investments. Emaar has a Dh62.8 billion backlog of sales overall, and the developer continues to fill the pipeline with new community-scale launches.
“Emaar’s focus on improving profit margins and operational efficiencies resulted in achieving higher EBITDA, which grew by 5 percent to Dh6.4 billion compared to H1-2022,” said a statement.
It’s interesting to note that first-half revenues decreased by 10% to Dh12.2 billion. However, Emaar tightened their spending, which is down 18% for the time period.
Dubai sales – Up and away
Emaar Development, the company’s Dubai-focused division, saw sales increase 25% in H1-23 to Dh19 billion. According to a statement, this is “attributed to the 16 successful launches across different masterplans, creating a pipeline for future revenue.” (The developer may be hoping to duplicate its recent success with Dubai Hills Estate with “The Oasis,” which could be the next sales catalyst. The 100 million square foot, multi-phase project is expected to cost Dh20 billion, with a focus on luxurious villas and mansions.)
The net profit for the time period at Emaar Development is Dh2.2 billion.
“Our investments have resulted in strong returns, driving our growth and improving our operations,” said Mohammed Alabbar, Emaar’s founder. “We are confident in our ability to continue executing our business strategy and meeting customer demand as we move forward in the year.”
The demand for off-plan purchases is increasing as a result of the ongoing real estate boom in Dubai. If a sizable portion of this demand is accommodated on The Oasis, Emaar should have a busy year’s end.
“The notable growth in our backlog indicates a healthy demand in our key markets and affirms the positive returns from our investments in major products,” said Alabbar.
More than 5,000 residences were supplied by Emaar in Dubai in H1-23. Another 28,000 are now being constructed.
Currently, Emaar Properties is trading on DFM at Dh7, not far from the 52-week high of Dh7.15. Emaar Development is priced at Dh6.40 (the highest price is Dh6.78).