Dubai property developer Deyaar reported a 90 per cent annual surge in its second-quarter profit as revenue rose amid a boom in the UAE’s real estate sector.
Net profit for the three months to the end of June climbed to Dh62.1 million ($16.9 million), the company said in a statement on Thursday to the Dubai Financial Market, where its shares are traded.
Revenue for the period jumped more than 52 per cent year-on-year to Dh316.3 million.
The company’s first-half profit rose 77 per cent to Dh118.4 million as revenue grew more than 70 per cent to Dh628.9 million.
“The positive … financial results were achieved due to strong performance executed by all business segments of the company, especially the property development business, which was the dominant revenue contributor,” Saeed Al Qatami, chief executive of Deyaar, said.
“Following our positive first-quarter financials, the [Q2] results were driven by several factors, including the success of recent projects and the increased frequency of the company's project launches.”
Dubai's property market registered strong growth in the first quarter of this year, with total transaction value up 80 per cent annually to Dh157 billion, according to official data.
Total transactions rose 49 per cent to 38,715 during the January-March period.
Average prices in Dubai's residential market increased by 16.9 per cent in the year to June, with apartment prices up 17.2 per cent and average villa prices rising by 15.1 per cent, according to a recent report by consultancy CBRE.
As of June, average apartment prices stood at Dh1,294 per square foot while average villa prices were at Dh1,525 per square foot, it said.
The UAE property market is registering growth on the back of government initiatives such as residency permits for retirees and remote workers.
The Emirates' move to expand the 10-year golden visa programme, the economic gains generated by Expo 2020 Dubai and higher oil prices are also supporting the property market's growth momentum.
Deyaar’s total assets reached Dh6.2 billion by the end of June, compared with Dh6.1 billion in December last year, it said. Total liabilities stood at Dh1.6 billion by the end of June.
The company is majority owned by Dubai Islamic Bank, the biggest Sharia-compliant lender in the UAE.
