Dubai property developer Deyaar reported more than threefold annual jump in its third-quarter profit, driven by higher revenue on the back of the UAE’s buoyant property market.
Net profit for the three months to the end of September climbed to Dh119 million ($32.4 million) from Dh36.3 million for the same period in 2022, the company said in a filing on Tuesday to the Dubai Financial Market, where its shares are traded.
Revenue for the period rose 50 per cent annually to nearly Dh311 million, driven by the “substantial growth in property development revenue amounting to Dh334.6 million”, according to Saeed Al Qatami, chief executive of Deyaar.
“This achievement is fuelled by the recognition of revenue from Tria and Mesk, coupled with accelerated construction progress in Regalia. Furthermore, the complete portfolio sale of Noor and Mesk has significantly bolstered our financial standing,” he said.
Demand for property continues to rise in the UAE amid government initiatives and overall economic growth propelled by higher oil prices.
In the third quarter of this year, average residential property prices across Dubai grew by 19 per cent on an annual basis and 5 per cent when compared to the previous quarter, with the cumulative increase hitting 30 per cent since the first quarter of 2020, consultancy Knight Frank said in a recent report.
Apartment prices rose by 19 per cent annually during the third quarter, while villa prices jumped by 18 per cent.
Property prices in the emirate's prime markets, including The Palm Jumeirah, Emirates Hills and Jumeirah Bay Island, are expected to rise by 5 per cent next year, while prices in other segments of the residential market are projected to grow at 3.5 per cent, the consultancy said.
Deyaar’s nine-month profit grew 130 per cent year-on-year to Dh237.5 million as revenue rose about 63 per cent to nearly Dh940 million.
The company’s assets grew about 2 per cent to reach Dh6.2 billion by the end of September compared to Dh6.1 billion by the end of December last year.
“As we move into Q4 2023, we continue our journey......with launches to be announced in the coming months,” Mr Al Qatami said.
Deyaar is majority-owned by Dubai Islamic Bank, the biggest Sharia-compliant lender in the UAE.
The main works at Tria, Deyaar’s luxury residential tower in Dubai Silicon Oasis, are “progressing steadily as planned”, while at Regalia in Business Bay, about 50 per cent of the tower floor slabs have been cast, the company said.