Dubai developer Deyaar more than doubles first-quarter net profit on property boom

Company says revenue grew 'significantly' over the past few months due to progress on developments

A model of Regalia tower, currently being built in Business Bay, at the Deyaar stand at Cityscape Global. Pawan Singh / The National

Dubai property developer Deyaar posted a sharp rise in profit for the first quarter, driven by a range of new launches amid the emirate's booming real estate market.

Net profit for the three months that ended in March rose 125 per cent to Dh56.4 million ($15.3 million), compared with Dh25 million during the same period last year, Deyaar said in a filing on Wednesday to the Dubai Financial Market, where its shares are traded.

Revenue during the period also rose by 93 per cent annually to Dh312 million.

“The remarkable profit follows a successful financial year and includes achieving unprecedented success in selling our recent project launches, such as Regalia at Business Bay, Tria in Dubai Silicon Oasis and Mar Casa at Dubai Maritime City,” said Saeed Al Qatami, chief executive of Deyaar.

“Deyaar has significantly increased the frequency of its project launches and today, the company has reached a pivotal turning point in its journey and looks towards a brighter future.”

The company's revenue has also “grown significantly” over the past few months due to construction progress at Regalia and the “exceptional performance” of its developments such as Noor and Mesk in Dubai Production City, Deyaar said.

Property sales in Dubai surged in the first quarter of this year compared with the same period a year ago as the market continued to rebound strongly from the pandemic on the back of government initiatives, higher oil prices and other measures to support the economy.

Dubai's total transactions value rose 80 per cent annually to Dh157 billion in the first quarter, according to official data.

The number of transactions also rose 49 per cent to 38,715 during the period.

Deyaar, majority owned by Dubai Islamic Bank, successfully completed a capital restructuring programme in June last year by writing off accumulated losses worth Dh1.7 billion from previous years.

The company also received a payment of Dh200 million after it signed the final settlement agreement in its land dispute with master developer Limitless, it said in December.

As part of its strategic plan, Deyaar plans to further grow its revenue in the next few years, it said.

“To achieve this, the company intends to focus on monetising and developing new projects on remaining plots, assess potential joint ventures and replenish the land bank with new diversified land,” Deyaar said.

It will also have a “phased development strategy focused on availability, profitability and diversification”.

The company is also seeking to carry out digital transformation initiatives to improve and modernise its business operations, enhance efficiency and automate processes, it said.