Dubai: Emaar’s Dubai operations didn’t seem to feel any impact from the general slowdown in the property market, and instead recorded a 62 per cent year-on-year gain in net profit to Dh819 million for the first quarter of 2018.
Revenues during the period were Dh3.27 billion, up a quite healthy 95 per cent from the Dh1.67 billion in the first quarter of last year.
The gains were driven by “strong construction progress focused on timely delivery,” the developer said in a statement on Monday.
Sales volumes during the three months weighed in at Dh3.91 billion, which adds up to a backlog of Dh41 billion of residential projects with confirmed buys.
But costs too have shot up — in the first three months, they totalled Dh1.85 billion, up 72 per cent on the Dh1.07 billion recorded same time last year. Revenues under the “other income” heading also dropped from Dh31 million a year ago to Dh7 million.
But there were gains, however, of Dh12 million in Emaar Development’s share from joint ventures. There were none under this category last year.
In the first quarter of this year, Emaar Development launched 2,500-plus homes across its projects in Dubai. But most others preferred to go slow on off-plan releases during the period, awaiting some improvement from the generally slack demand. Sources say the market may even have to wait until September for a new wave of off-plan releases to come through.
But for its 2018 first-quarter launches, Emaar managed to score well, particularly with the towers released as part of the Emaar Beachfront master-development.
The first project — Beach Vista — sold out and along with a subsequent tower release, the Sunrise Bay, recorded sales of Dh1.35 billion plus. The 10 million square foot destination is also the first of two that will benefit from the alliance with Abu Dhabi’s Aldar.
Meanwhile, there is “continued demand” for the upmarket Dubai Creek Harbour releases. Work on the Dubai Creek Tower, which will be the focal point of the mixed-use destination, is making progress on the construction side, with 90 per cent of the pile cap work complete.
“With our new developments, we are bringing exceptional lifestyle choices that meet the aspirations of our new generation through future city hubs that add value to the economy,” said Mohammad Al Abbar, Emaar chairman, in a statement.
As per the current schedule, the company has a delivery pipeline of 27,200-plus units — from 10 master-developments — in the next four to five years. New additions could come in the form of the Emaar-Aldar joint venture to develop the “next era of iconic destinations that will shape the UAE’s ever-evolving skyline”. It has a targeted Dh30 billion development pipeline.