Emaar Properties, Dubai’s largest listed developer, reported that its net profit more than doubled in the third quarter thanks to strong property sales.
Net profit for the three months to the end of September rose to Dh1.02 billion ($277 million), compared with a net profit of Dh359m in the same period last year, the developer said in a statement to the Dubai Financial Market, where its shares are traded.
Revenue rose 65 per cent to Dh6.8bn during the third quarter of 2021, compared with Dh4.13bn a year earlier.
The developer registered a twofold increase in property sales to a record Dh26.15bn in the first nine months of 2021 versus the same period last year, led by its UAE development business and complemented by its international operations, according to the statement.
Domestic property sales from January until the end of September reached Dh20.99bn, which is five times the value of UAE property sales achieved for the same period last year, according to the filing.
Revenue rose 57 per cent during the first nine months to Dh19.3bn, compared with Dh12.35bn during the same period in 2020, Emaar Properties said.
Net profit for the first nine months of 2021 stood at Dh2.58bn, 25 per cent higher than the corresponding period last year.
The UAE's property market, which softened after a three-year oil price slump that began in 2014 and subsequent oversupply concerns, is showing signs of a revival as people look to upgrade to larger spaces amid a rise in remote working and learning owing to the pandemic.
Dubai recorded 37,537 sales transactions worth Dh88.12bn in the eight months of this year, up 22.61 per cent compared with the whole of last year, according to the listings portal Property Finder.
“The resilience of Dubai’s property market is a testament to the UAE’s enduring strength and robust economic performance in 2021,” an Emaar statement said.
“These results are not by chance; they are a collective effort and the result of a shared commitment to setting the benchmark for others to follow.”
Emaar’s international operations recorded property sales of Dh5.16bn in the first nine months of 2021, a growth of 50 per cent compared with Dh3.44bn in the corresponding period last year, the filing showed.
Emaar’s international businesses recorded revenue of Dh2.99bn, representing 15 per cent of Emaar’s total revenue, underpinned by successful operations in Egypt, India and Pakistan, Emaar said.
The Burj Khalifa developer now has a property sales backlog of Dh46.9bn, which will be recognised as future revenue for Emaar Properties in the coming three to four years.
Emaar has handed over more than 79,800 residential units in Dubai and key international markets, with more than 25,000 units currently under development in the UAE and 11,000 units in global markets.
Emaar Development, the development arm of Emaar Properties, recorded property sales worth Dh7.12bn during the third quarter, more than six times the sales achieved during the same period last year.
The company achieved revenue of Dh3.85bn and net profit of Dh872m during the three months to the end of September, which grew 66 per cent and 170 per cent, respectively, compared with a year earlier, according to the filing.
Emaar Malls, a unit of Emaar Properties which owns and operates outlets including The Dubai Mall and Dubai Marina Mall, reported a net profit of Dh1.07bn in the first nine months of this year owing to higher revenue as Dubai’s retail sector continued to benefit from an improving economy.
Revenue rose to Dh3.19bn, the company said, adding that Emaar Malls’ assets maintained occupancy levels of 91 per cent.
Emaar Malls’ e-commerce platform Namshi recorded sales worth Dh1.01bn from January to the end of September, backed by its performance in Saudi Arabia, Kuwait and other GCC countries, along with its launch in Qatar earlier this year.
The hospitality, leisure, entertainment and commercial leasing businesses of Emaar recorded revenue of Dh1.6bn for nine months, an increase of 39 per cent over a year earlier.
Hotels under Emaar Hospitality Group boasted average occupancy levels of 62 per cent during this period, the company said.