Emaar Properties reports lower first-half profit despite higher revenue

The company registered a 229% rise in property sales during the period

Emaar remains "optimistic” for the remainder of the year as the UAE's property market continues to recover from the coronavirus pandemic. Chris Whiteoak / The National

Emaar Properties, Dubai’s largest listed developer, reported an 8 per cent drop in its first-half net profit despite a rise in revenue during the period as expenses rose.

Net profit for the six-months to the end of June declined to Dh1.56 billion, the company said in a statement to the Dubai Financial Market, where its shares are traded. Revenue rose 52 per cent to Dh12.5bn. Operating expenses as well as selling, general and administrative expenses all rose.

The company recorded property sales worth Dh16.48bn in the first half, up 229 per cent compared with the same period last year.

“The remarkable performance was a result of Emaar’s concerted focus on sales of under-construction projects and the successful launch of properties both in the UAE and international markets,” Emaar said.

Net profit in the second quarter slid 17 per cent to Dh903 million, while revenue increased 125 per cent to Dh6.5bn.

“Our performance in the second quarter demonstrates our continued resilience and ability to anticipate and ‘future-proof’ the business,” an Emaar spokesperson said.

“Looking to the future, I am very optimistic about the remainder of the year as we maintain our focus on meeting and exceeding our customers’ expectations, delivering long-term, sustainable results across our business units and collectively strengthening our organisation.”

Emaar has handed over more than 77,000 residential units in Dubai and in international markets since 2002, with more than 25,700 units currently under development in the UAE and 11,000 units in global markets.

Profit at its Emaar Development arm grew 46 per cent to Dh1.51bn in the first half as revenue climbed 61 per cent to Dh7.75bn, it said.

Dubai's property market has registered an increase in deal activity over the past few months thanks to pent-up demand in the market. The emirate's house prices rose at their fastest pace in seven years in the second quarter of 2021, according to a recent report from Knight Frank.