Deyaar Development, a Dubai-listed real estate developer, said its first quarter net profit jumped more than five times as revenue increased on project delivery.
Net income for three months to the end of March climbed to Dh15.1 million ($4.14m), rising from Dh2.6m recorded for the same period last year, the company said in a statement to the Dubai Financial Market, where its shares trade. Quarterly revenue rose to Dh149.2m from Dh98.8m, a year earlier.
The company was able to deliver strong performance “due to our continuous efforts and commitment to deliver our projects on time”, Saeed Al Qatami, chief executive of Deyaar, said.
The ready and off-plan residential portfolio of Deyaar, which is majority owned by Dubai Islamic Bank, has seen a high demand and “we expect this demand to grow even more with the economic recovery in the emirate and the effort that the government [is making] towards executing the Dubai Urban Master Plan 2040”, he said.
The property market in the UAE softened in the wake of a three-year oil price slump that began in 2014 and as a result of the Covid-19 pandemic, which pushed the global economy into its worst recession since the 1930s.
However, economic support measures and government initiatives, including visas for expatriate retirees and the expansion of the 10-year golden visa scheme to encourage foreign professionals to settle in the UAE, have helped in improving sentiment.
Dubai Expo 2020 and the emirate's new remote working visa is also expected to drive demand for properties. The Dubai 2040 Urban Master Plan that aims to make the city the world’s best to live in, will further boost the real estate sector in the emirate.
Established in 2002, Deyaar has developed projects in Dubai's Business Bay, Dubai Marina, Al Barsha and Jumeirah Lakes Towers, among others.
Early this year, Deyaar announced the handover of its Bella Rose project in Dubai Science Park consisting of 478 residential units. The construction work of the third and fourth phases of its residential project Midtown is also progressing according to plan, which will add 11 more buildings to the development.
Last year, shareholders of Deyaar approved a plan to restructure its capital to boost its finances and write off accumulated losses. It secured an approval from the Securities and Commodities Authority to reduce its capital to Dh4.55 billion from Dh5.78bn.