Aldar's affordable housing portfolio a 'top priority' amid growing UAE population

Abu Dhabi developer's net profit in the second quarter jumped 25 per cent to $599 million

Aldar Properties credits its strong performance to the UAE's 'positive macroeconomic fundamentals'. Victor Besa / The National

Aldar Properties, Abu Dhabi's biggest listed developer, will continue to ensure more affordable housing options to cater to a growing population in the UAE, its chief finance and sustainability officer has said.

The affordable segment, alongside its industrial and logistics portfolio, is a “top priority” for the company's recurring investments, Faisal Falaknaz told The National during a conference call after the company released its second-quarter results on Tuesday.

“That is one of the top asset classes that we are focused on growing today in terms of our capital allocation priority … there's a lot of pent-up demand for more affordable offerings in Abu Dhabi and Dubai,” Mr Falaknaz said.

“We have a lot happening in the pipeline and, in due course, we'll be announcing those.”

Aldar reported a 25 per cent annual jump in its second-quarter net profit, underpinned by higher sales and a strong UAE economy.

Net profit in the three months ended June rose to Dh2.2 billion ($599 million), the company said on Tuesday in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue for the quarter leapt 46 per cent year-on-year to Dh7.7 billion, while earnings before interest, taxes, depreciation and amortisation, a key metric of profitability, climbed 39 per cent to Dh2.8 billion.

For the first half of 2025, net profit surged 24 per cent annually to Dh4.1 billion. Revenue leapt 42 per cent to Dh15.5 billion, while Ebitda increased 38 per cent to Dh5.3 billion.

Aldar said total sales in the second quarter rose 32 per cent annually to Dh9 billion, while first-half sales grew 35 per cent to Dh17.5 billion.

Aldar's performance through the first six months of the year comes “against a backdrop of positive macroeconomic fundamentals, underpinned by the UAE’s strong fiscal position and sustained investment across key sectors”, said Mohamed Al Mubarak, chairman of Aldar.

Furthermore, Aldar currently has no plans to raise more capital in the near future, said Mr Falaknaz. The company has a “very strong” balance sheet with about Dh30 billion in liquidity and is not looking to expand into other overseas markets outside Egypt and the UK, he said.

Real estate remains one of the key pillars of UAE's economy, proving its resilience after strongly bouncing back from the dip brought about by the pandemic.

Government measures such as residency permits for retired and remote workers and expansion of the 10-year golden visa programme have boosted foreign investment flows into the Emirates' property market over the past few years.

The robust momentum in the UAE’s economy − the Arab world's second largest − driven by the government's diversification efforts, have also support real estate market activity.

Also, millionaire investors are increasingly looking towards Abu Dhabi real estate. The UAE capital is home to the highest number of luxury properties on sale in the country, with 352 homes for sale valued above $1 million, a recent report by developer Bloom Holding found.

Last week, Aldar announced that it sold an eight-bedroom ultra-luxury mansion for Dh400 million, which it claimed was the most expensive home ever sold in the UAE capital.

“Our development business recorded high demand across existing inventory and launches … our focus remains on delivering our substantial develop-to-hold pipeline, while maintaining a steady pace of residential launches aligned to market demand,” said Talal Al Dhiyebi, group chief executive of Aldar.