Emaar Properties' 9-Month Net Profit Surges 42% Driven by High Real Estate Demand

Emaar Properties has reported a nine-month net profit of Dh8.2 billion, marking a substantial 42% increase over the same period last year, driven by robust revenues of Dh18.4 billion. The growth is attributed to increased tourism, stronger retail sales, and heightened demand for real estate.

The company disclosed a group property sales figure of Dh31.1 billion for the first nine months of 2023, reflecting a notable 16% year-over-year gain. As of September 30, Emaar's revenue backlog from property sales stands at Dh69.5 billion, indicating a promising outlook for revenue recognition in the coming years.

Founder of Emaar, Mohamed Alabbar, highlighted the positive trajectory in property sales, the surge in tourism, and strategic investments contributing to the company's financial performance. He emphasized their commitment to delivering value to both existing and new customers.

Emaar Development, a division of Emaar Properties, reported a 43% increase in net profit to Dh4.1 billion for the first nine months of 2023, supported by a 25% rise in real estate sales. The division recorded property sales of Dh28.9 billion during this period, up from Dh23.2 billion in the same period in 2022. The launch of twenty new projects is seen as a foundation for future revenue, with a disclosed sales backlog of Dh59.6 billion.

The Dubai property market continues to boom, with residential transactions reaching a record high last year and surpassing those levels in the first ten months of 2023. However, October saw a 23.6% decrease in sales compared to the same month last year, attributed to fewer new off-plan properties being offered. Demand for off-plan developments has notably increased since 2022, with 90% of homes in desirable central areas already sold, and over 67% of these homes attracting bidders, according to CBRE Group Inc.