Emaar Properties reported an increase of more than 80 per cent in its net profit for 2021, after its best annual sales since its inception.
The net profit of the company, Dubai’s largest listed developer, for the 12 months ending on December 31 increased to Dh3.8 billion ($1.03bn), compared with Dh2.1bn in 2020, the company said in a statement on Monday to the Dubai Financial Market, on which its shares are traded.
The company’s revenue soared 57.4 per cent annually to Dh28.3bn during the period.
Emaar’s portfolio of prime assets will “continue to benefit from the fundamental shifts occurring within the real estate market as well as the company’s approach to portfolio optimisation”, Emaar’s founder, Mohamed Alabbar, said in a statement.
The property market in the UAE, the second-biggest Arab economy, has made a strong recovery from the pandemic-induced slowdown amid business and social reforms and government stimulus measures.
The value of property deals in Dubai more than doubled in 2021 and broke a 12-year record in terms of real estate sales transactions, buoyed by demand in the secondary real estate market.
The company reported a sharp rise in the sale of properties last year to Dh33.7bn, compared with Dh10.9bn in 2020.
It also reported a sales backlog of more than Dh46bn that will be recognised as future revenue.
The backlog reflects the “strength of Emaar’s financial position to preserve high revenue, profitability and shareholders’ return in the foreseeable future”, the company said.
“Emaar has a substantial development pipeline and landbank, which, when combined with its high-quality, loyal customer base and expanding talented and dedicated team, leaves Emaar well-positioned to execute on its clearly defined strategy and to successfully deliver attractive, sustainable returns for all stakeholders,” Mr Alabbar said.
Emaar Development, the UAE build-to-sell property development business, majority-owned by Emaar Properties, achieved record property sales in Dubai during 2021, recording an increase of 335 per cent to Dh27bn.
The company’s international operations recorded property sales of Dh6.2bn last year, a yearly growth of over 36 per cent.
“This highlights the positive property market recovery as well as the significant interest in Emaar’s international operations and establishes Emaar as a trusted master developer,” the company said.
Emaar Malls recorded sales of Dh4.9bn with a net profit of Dh1.8bn last year, representing a year-on-year rise of 42 per cent and 160 per cent, respectively.
Emaar has handed over more than 81,600 residential units in Dubai and internationally since 2002. More than 24,500 units are under development in the UAE and 10,700 units globally.