Aldar’s 2024 profit surges 43% amid thriving property market

Abu Dhabi’s biggest developer posts full-year profit of $1.49 billion amid a sharp rise in UAE property sales

Aldar’s full-year sales reached Dh33.6 billion, up 20 per cent from the previous year. Victor Besa / The National

Aldar Properties, Abu Dhabi’s biggest listed developer, reported a 43 per cent rise in its 2024 profit, as a sharp increase in UAE sales to overseas and resident buyers drove revenue amid a boom in the emirate's property market.

Net profit attributable to equity holders of the company for the 12 months to the end of December rose to Dh5.6 billion ($1.49 billion), the company said in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue and rental income during the reporting period was up by more than 62 per cent on an annual basis to Dh23 billion.

Aldar’s full-year sales reached a record high of Dh33.6 billion, up 20 per cent from the previous year. UAE sales to overseas and foreign resident buyers hit Dh22.2 billion at the end of last year, accounting for about 78 per cent of total sales, a sharp increase from 66 per cent contribution in 2023, the company said.

“During 2024, Aldar delivered exceptional operational and financial performance against the backdrop of a thriving domestic real estate market, which is being enabled by government policies that ensure the UAE is one of the world’s most attractive destinations for both individuals and businesses to call home,” said Mohamed Al Mubarak, chairman of Aldar Properties.

The UAE has introduced initiatives such as residency permits for retired and remote workers and also expanded the 10-year golden visa programme as part of efforts to boost its appeal to international investors.

Last year, Dubai recorded real estate deals worth Dh761 billion, up 20 per cent compared to 2023, with the total number of transactions for the year increasing by 36 per cent to reach 226,000, according to the latest data provided by Dubai Media Office.

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In Abu Dhabi, the value of total real estate deals last year climbed 10 per cent on an annual basis to Dh96.2 billion, with the number of transactions rising by about 24 per cent to 28,249, according to Abu Dhabi Real Estate Centre data.

"Since 2020, our net profit has more than tripled, return on equity has doubled to 16.1 per cent, total assets have doubled, and development sales are nearly 10 times higher than 2020 levels," Faisal Falaknaz, Aldar's chief financial and sustainability officer told reporters during a media call.

Aldar had total assets of nearly Dh86 billion at the end of 2024 as compared to Dh73 billion at the end of 2023.

The company will continue to launch a number of new projects this year in Abu Dhabi, including Al Fahid Island development as well as projects in Yas and Saadiyat Islands and a new mega development in Dubai at the end of the first quarter. It unveiled 12 projects last year.

In 2023, Aldar acquired Al Fahid Island, a 3.4 million square metre land bank, for Dh2.5 billion to expand its portfolio.

Aldar continues "to be very optimistic about the market going forward, both Abu Dhabi and Dubai, and you should expect busy, if not busier, calendar this year as well", Mr Falaknaz added.

The UAE accounts for 80 per cent of Aldar's business currently and it will "continue will focus on solidifying our position here", he said.

Saudi Arabia is also an "interesting" market and when the right opportunity comes up, it aims to expand in the kingdom.

"We are building up on the existing international platforms we already entered, [such as] Egypt and LSQ [London Square], the latter of which has had a busy year in terms of land acquisitions in London, and we will be very focused on now activating those land opportunities."

In 2023, Aldar acquired UK developer London Square for Dh1.07 billion, marking its first acquisition outside the Mena region.

London Square sales totalled Dh1.7 billion for the full year, while sales in Egypt through its subsidiary Sodic (The Sixth of October for Development and Investment) reached Dh3.5 billion, according to the statement.