Dubai’s Deyaar Development reported an 80.59 per cent surge in third-quarter profit on the back of higher revenue as it benefited from the continuing recovery in the UAE’s property market.
Net profit for the three months to the end of September climbed to Dh8.1 million ($2.2m), the company said in a statement to the Dubai Financial Market, where its shares are traded. Revenue for the period rose 6.34 per cent to Dh120.7m.
“The company continues to achieve positive results this year in line with the constant increase in demand and the recovery of the real estate market,” said Saeed al Qatami, chief executive of Deyaar.
The UAE property market, which softened owing to a three-year oil price slump that began in 2014 and oversupply concerns, is showing signs of recovery as demand picks up for larger homes amid a remote working and learning trend sparked by Covid-19.
Economic support measures and government initiatives – such as residency permits for retirees and remote workers and the expansion of the 10-year golden visa programme – have also helped to improve sentiment.
During the nine-month period, Deyaar's net profit more than doubled to Dh30.8m as revenue rose 45 per cent to Dh418m.
The company also said it made “noticeable progress” in the construction of the third and fourth phases of its Midtown mega-project at Dubai Production City and achieved Dh1 billion in sales at its newly launched project Regalia in Business Bay.
“We are currently planning to launch a number of projects that will be announced at a later stage,” Mr Al Qatami said.
The new projects are in Jumeirah Village Circle, Al Furjan and at its Midtown master development vice president of sales Nasser Amer told The National in at Cityscape Global last week.
The company also did “exceedingly well” in terms of overall sales this year thanks to higher demand from buyers, according to Mr Amer.
One of the largest property companies in Dubai, Deyaar has built projects across the emirate in areas such as Dubai Marina, Business Bay, Dubai Silicon Oasis and Jumeirah Lakes Towers.
The company is majority owned by Dubai Islamic Bank, the biggest Sharia-compliant lender in the UAE.