Dubai: The Dubai master-developer Emaar recorded group-wide property sales of Dh20.2 billion in the first six months of 2023, propelling it to a 15 per cent growth in net profit, to total Dh4.9 billion.
Much of the numbers continue to be generated from the sustained demand for property investments in Dubai. Emaar’s overall sales backlog comes to Dh62.8 billion, with the developer keeping the pipeline busy with new community-scale launches.
“Emaar's focus on improving profit margins and operational efficiencies resulted in achieving higher EBITDA, which grew by 5 per cent to Dh6.4 billion compared to H1-2022,” said a statement.
Interestingly, revenues for the first-half dropped 10 per cent to Dh12.2 billion. But Emaar also tightened its costs, which are down 18 per cent for the period.
Dubai sales - Up and away
Meanwhile, its Dubai-focussed entity - Emaar Development - saw sales rise 25 per cent in H1-23, to Dh19 billion. This is 'attributed to the 16 successful launches across various masterplans, creating a pipeline for future revenue', said a statement. (The next sales driver could be 'The Oasis', where the developer would hope to recreate what it achieved with Dubai Hills Estate in the recent past. The cost of the 100 million square feet, multi-phase project, with a major emphasis on premium villas and mansions, is estimated at Dh20 billion.)
Emaar Development's net profit for the period amounts to Dh2.2 billion.
Dh 53.2 b
Emaar Development's sales backlog in Dubai as of end June 2023
"Our investments have resulted in strong returns, driving our growth and improving our operations," said Mohammed Alabbar, Emaar's founder. "We are confident in our ability to continue executing our business strategy and meeting customer demand as we move forward in the year."
The Dubai property boom continues, and which is showing up in the demand for offplan buying. If a sizeable section of this demand gets onto The Oasis, that should make for a busy end-of-year for Emaar.
"The notable growth in our backlog indicates a healthy demand in our key markets and affirms the positive returns from our investments in major products," said Alabbar.
In H1-23, Emaar delivered more than 5,000 homes in Dubai. There are a further 28,000 being built.
Emaar Properties is currently trading at Dh7 on DFM, close to the 52-week high of Dh7.15. Emaar development is at Dh6.40 (Dh6.78 being the high).
