Dubai: Abu Dhabi master-developer Aldar has delivered a 22 per cent rise in Q1 net profits to Dh836 million, built on what it says has been record quarterly sales of Dh4.5 billion. The other contributions – heavy at that – came from the recurring income portfolio.
In fact, sales are up by 108 per cent from same time last year’s Dh2.19 billion – a sign that buyer interest for Abu Dhabi property – ready and offplan – runs deep.
Revenues for Aldar came to Dh1.9 billion, which is an 8 per cent increase.
Overseas and UAE resident buyers now account for 45 per cent of Aldar's sales, and a sharp increase on the 30 per cent at the end of 2022.
“During Q1, we launched a variety of new residential concepts in Abu Dhabi that proved incredibly popular amongst investors locally and overseas,” said Talal Al Dhiyebi, Group CEO. “The success of these played a large part in Aldar’s stellar performance during the first three months of the year.
Aldar’s investment platform continued to grow at pace driven by tenant occupancy of 93 per cent across assets, strong rental returns, and positive contributions from new acquisitions within the portfolio, particularly the four office towers at ADGM.
“Aldar’s investment platform continued to grow at pace driven by tenant occupancy of 93 per cent across assets, strong rental returns, and positive contributions from new acquisitions within the portfolio, particularly the four office towers at ADGM.’
Those four towers at Abu Dhabi Global Market will also offer more gains on the recurring income front. (With an occupancy of 97 per cent, it does add up.)
- Aldar's Dubai launch is scheduled by end of this year, according to Faisal Falaknaz, acting Group Finance and Sustainability Officer.
- The other big market for entry for the Abu Dhabi master-developer remains Saudi Arabia.
- Aldar will take a 'value-added approach' to what more can be done at Nurai Island, which Aldar acquired recently.
- "That's the approach we are taking with the Al Hamra Mall (in Ras Al Khaimah that too was bought recently) or the Yas Mall earlier," said Falaknaz. "We are looking at whether to rebrand the asset, which continues to operate very well."
Dubai launch
The numbers set the company up for what is a much anticipated entry into Dubai, where it will initially build 3 communities.
"As the UAE continues to broaden its appeal as a business and lifestyle destination, we expect robust real estate market dynamics to sustain through 2023," said Al Dhiyebi. "Against this backdrop, Aldar will continue to deploy capital in a disciplined manner across its platforms to drive our transformational growth agenda.”
