Aldar Properties, Abu Dhabi’s biggest listed developer, reported an 18 per cent increase in its third-quarter profit on the back of higher revenue and rental income as the UAE property market continues to rebound from the Covid-19 pandemic.
Net profit attributable to equity holders of the company for the three-month period to the end of September climbed to about Dh557 million ($152m), compared to Dh473m during the same period last year, Aldar said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue and rental income for the period rose 30 per cent annually to Dh2.7 billion.
The company reported a ninth consecutive quarter of record-breaking group sales, with 2022 sales at Dh9.3bn so far, surpassing last year’s total group sales by Dh2bn.
Growth was driven by continued strong demand for existing inventory and new property launches in the UAE, as well as robust sales in Egypt, the company said.
“Having demonstrated strength and agility through various economic cycles, Aldar continues to accelerate its sustainable growth in a bullish UAE market, while creating long-term value for its shareholders,” group chief executive Talal Al Dhiyebi said.
“As such, we are intent on maintaining our pace of investment activity in the region, backed by our strong liquidity position and driven by our transformational growth strategy.”
Aldar will also continue to activate its “extensive land bank to sustain our elevated level of development sales, in line with the growth of off-plan sales to international and expatriate buyers as Abu Dhabi’s position as a global investment destination matures,” Mr Al Dhiyebi said.
The UAE's property market made a strong rebound in 2021 as it recovered from the coronavirus-induced slowdown and the trend has continued this year as the country's economy remains on a strong growth trajectory, expected to grow at its quickest pace in more than a decade.
Pent-up demand and improved investor sentiment have also helped to drive property sales, particularly in Dubai and Abu Dhabi, amid the pick-up in economic activity.
During the third quarter of this year, villa sales prices in Dubai jumped 19 per cent annually and apartment prices increased 17 per cent amid a broader recovery in the UAE's property market, a report by Asteco said this week.
In Abu Dhabi, villa and apartment sales prices rose 4 per cent a year during the third quarter.
Off-plan and secondary property sales in Dubai reached a 12-year high in the third quarter, both in terms of volume and value, according to a report by Property Finder.
A total of 25,456 sales transactions worth Dh69.72bn were recorded in the third quarter, marking an increase of about 62 per cent in terms of volume and more than 65 per cent in terms of value, compared with the third quarter of 2021.
Meanwhile, Abu Dhabi recorded 7,474 property transactions worth more than Dh22.51bn in the first six months of the year, including 3,568 property purchase and sale transactions worth Dh8.9bn and 3,906 mortgage transactions worth Dh13.6bn, according to data released by the emirate's Department of Municipalities and Transport earlier this year.
Aldar expects a “strong and buoyant real estate market, with positive sentiment continuing well into 2023" amid government initiatives and strong economic growth, as well as Abu Dhabi's continued push “to position itself as a premier investment destination and world-renowned location to live, work and visit”, it said on Thursday.
The country's economic output, which expanded 3.8 per cent in 2021, is expected to grow 5.4 per cent and 4.2 per cent in 2022 and 2023, respectively, according to the latest projections from the UAE Central Bank.
Aldar's nine-month net profit attributable to equity holders of the company rose more than 32 per cent, year on year, to Dh2bn as revenue and rental income during the period climbed about 28 per cent to Dh8bn.