The Aldar headquartrers in Abu Dhabi
The government’s policies on new residency visas as well as giving foreigners freehold property titles as one of the main reasons behind the strong financial results. Image Credit: Gulf News Archives

Abu Dhabi: Aldar Properties on Thursday announced its latest half-year results for 2019 with revenue increasing by 15 per cent to Dh3.42 billion driven by the group’s strong sales in Abu Dhabi’s real estate market.

For the second quarter, net profits increased by 7 per cent to Dh476 million compared to the same period last year, while revenues rose by 10 per cent Dh1.66 billion. Aldar’s off-plan development sales were also up 129 per cent in the second quarter to Dh853 million with its launch of Lea Yas Island and Alreeman II.

“There is an upswing in sentiment towards Abu Dhabi‘s real estate market with the recent announcement of our Dh9 billion worth of development projects since the start of 2019,” said Talal Al Dhiyebi, chief executive officer of Aldar Properties.

Policy boost
Government’s policies on new residency visas as well as giving foreigners freehold property titles were behind the strong financial results.

“Those, coupled with government initiatives to spur economic growth, are having a positive multiplier effect on the wider Abu Dhabi economy and stirring confidence. This is reflected in our strong performance for the period, underpinned by near Dh2 billion in off plan sales,” he added.

The group’s half-year off-plan development sales totalled Dh1.9 billion, up 78 per cent compared to the same time last year, with 80 percent of its development units sold.

Speaking to the media after the announced results, Greg Fewer, chief financial officer at Aldar Properties, credited c

10%

Rise in Aldar’s revenues in the second quarter

“One of the main reasons that we actually established and increased our sales guidance at the beginning of the year [was] both because of freehold titles [and] because of the relaxation of residency [visas] within the UAE.

“We recognised this opportunity and this sentiment shift that would come on the back of these positive measures and so that sentiment shift and expectation was behind our increase in sales guidance to Dh 4 billion for the year. The fact we’re absolutely on track to hit that sales guidance at the half year – as we’re at Dh1.9 billion now – is a direct reflection and benefit of these positive measures the government has taken,” he added.

Fewer also spoke on Abu Dhabi’s overall real estate market calling the supply situation balanced, with several opportunities for even more growth.

129%

Rise in Aldar’s offplan development sales in the period

“The overall supply situation of real estate in Abu Dhabi we view as balanced and because of that we see opportunities throughout the real estate spectrum – in particular in the affordable space where we continue to see opportunities to introduce new products into rental investors.

“We also see opportunities in the luxury and upper mid space in real estate, in particular on Saadiyat Island which is a very important new destination that we brought into our portfolio in 2018,” he added.