Dubai: Emaar Properties posted a nine-month net profit of Dh8.2 billion, which grew 42 per cent compared to the same period last year, aided by revenues of Dh18.4 billion which was bolstered by growth in tourism, higher retail sales, and rise in real estate demand.
With a 16 per cent year-over-year growth, Emaar recorded group property sales of Dh31.1 billion for the first nine months of 2023. As a result, the company's revenue backlog from property sales reached Dh69.5 billion, as of September 30, "indicating robust outlook for revenue recognition in the forthcoming years", the company said.
Mohamed Alabbar, Founder of Emaar, said: "With the continued surge in tourism, the launch of attractions like the Dubai Mall Chinatown, and the positive trajectory in property sales, we are honouring our commitment to both our loyal and new customers.
Demand drives sales
"Our financial performance, underscored by recent credit rating upgrades, reflects our strategic investments and their ensuing returns. As we approach the year's end, we remain confident and focused on further enhancing our operational efficiencies, thereby delivering even more value to our customers and stakeholders."
Meanwhile, Emaar Development, owned by Emaar Properties, posted a 43 per cent increase in net profit to Dh4.1 billion for the first nine months of 2023, with earnings boosted by a 25 per cent increase in property sales. It saw its property sales reach Dh28.9 billion in the first nine months of 2023, compared to Dh23.2 billion during the same period in 2022.
The property developer attributed the growth to launches of 20 new projects, while adding that this is "creating a foundation for future revenue." Also, it reported a sales backlog of Dh59.6 billion, which will be recognised as revenue in the coming years.
Dubai property boom
A property boom in Dubai that pushed the number of residential transactions to a record high last year has continued into 2023, with sales surpassing those levels in the first 10 months of this year.
The Middle East's tourism and financial hub recorded 93,590 transactions through to the end of October, surpassing 92,178 in all of 2022, according to CBRE Group Inc. Still, the number of sales slowed in October, falling 23.6 per cent from a year earlier as developers offered fewer new off-plan projects.
Off-plan developments have seen a surge in demand since 2022, with 90 per cent of all homes in prime and core locations already sold. Just over 67 per cent of such properties across the city have also garnered buyers, according to CBRE.