Dubai property developer Emaar Properties reported a nearly 35 per cent annual increase in its first quarter profit, as property sales rose despite uncertainty driven by the Iran war.
Net profit attributable to owners of the parent for three months to the end of March climbed to about Dh5 billion ($1.36 billion), Emaar said in a statement on Monday to the Dubai Financial Market, where its shares are traded.
Revenue for the quarter rose 23 per cent annually to Dh12.4 billion, while property sales reached Dh22.4 billion, up 16 per cent, driven by higher demand and new project launches in the UAE. Revenue backlog as of March 31 stood at about Dh163.4 billion, an increase of 29 per cent year-on-year.
The performance “reflects the strength and resilience of the UAE economy, which continues to provide a stable foundation despite broader regional volatility”, Emaar founder Mohamed Alabbar said. “Recent geopolitical developments in the region have reinforced the importance of operating in markets defined by safety, institutional continuity, and long-term vision.”
The UAE's real estate market, which was booming at the start of the year, has largely weathered any immediate fallout from the Iran war. In the first quarter of this year, the value of Dubai's real estate transactions surged by nearly a third, underpinned by an influx of new investors and rising interest in luxury properties.
Transactions in the three months to the end of March hit Dh252 billion, a 31 per cent annual increase, the Dubai Media Office said this month, referring to data from the Dubai Land Department (DLD).
A total of 60,303 property transactions were signed, a 6 per cent year-on-year rise, and part of 718,160 deals recorded during the quarter, the DLD said.
However, in March, Dubai property valuations recorded their first decline since the pandemic, ValuStrat said in a report last month. Villa values fell 5.8 per cent monthly, with a slower annual gain of 12.1 per cent, while apartment values dropped 6.3 per cent, with annual growth slowing to 3.9 per cent.
Emaar Development, a majority-owned Emaar subsidiary specialising in the build-to-sell property development business, also reported a sharp rise in profit to about Dh3 billion, up 52 per cent, with property sales growth of 22 per cent to Dh20.1 billion. The company's revenue for the period rose 36 per cent to Dh6.9 billion.
Property sales for Emaar’s international real estate operations reached Dh2.3 billion and revenue rose 5 per cent year-on-year to Dh700 million. International development represented about 5.3 per cent of total group revenue in the first quarter.
Emaar’s shopping malls, retail and commercial leasing operations recorded revenue of Dh1.8 billion in the first quarter of this year, up 15 per cent annually, with an average occupancy rate of 98 per cent across its portfolio, the company said.
Emaar’s hospitality, leisure and entertainment portfolio recorded steady guest activity, the company said. But performance in March was affected by the regional crisis. Average UAE hotel occupancy reached 69 per cent in the first quarter.
“While macroeconomic and geopolitical conditions remain dynamic, Emaar is well-positioned for continued growth, supported by strong market fundamentals, a high-quality development pipeline with a record revenue backlog and a resilient recurring income stream,” Emaar said. “The group will continue to monitor market conditions closely and remain committed to disciplined execution, prudent capital allocation, and long-term value creation.”
