The UAE's decisive and world-leading approach to the pandemic has piqued the interest of the world's affluent, who continue to rush to the UAE and boosting real estate values. Macroeconomic prospects-- bolstered by higher oil prices, a high vaccination rate, and events like Expo - are projected to spur the real estate market to recovery.
Aldar Properties, thus, appears to be a top pick for capitalizing on the region's burgeoning real estate industry. With a market valuation of Dh32.3 billion, it is principally involved in the development, sale, investment, and construction of hotels, schools, marinas, beach clubs, and golf courses, apart from homes and offices.
The portfolio includes Yas Island, Al Raha Beach, World Trade Centre Abu Dhabi, Al Falah, and Noor Al Ain. The Group's third quarter gross profit increased 20 per cent to Dh834 million, thanks to highest-ever quarterly sales of Dh2.69 billion, bringing total sales to Dh6.14 billion for the year-to-date.
The high-margin inventory sales at Mamsha and the steady ramp up of Aldar’s projects contributed to this record sales figure. Additionally, the retail portfolio saw a significant resurgence, with footfall and revenues returning to pre-pandemic levels. With Dh3.6 billion in unrestricted cash and Dh4 billion in undrawn committed facilities, the Group has a strong liquidity position to drive long-term development and increasing shareholder value by paying consistent dividends.
The company has a dividend yield of 3.52 per cent and maintained this even during the pandemic when the sector was hit hard. This reinforces investor confidence to withstand any market swings.
Egypt could be just the start
A consortium led by Aldar and ADQ will acquire an approximate 85.5 percent ownership in Egypt's Sixth of October Development and Investment Company for 6.1 billion Egyptian pounds ($386.8 million) as part of its growth ambitions. The real estate behemoth wants to grow its footprint in the the Arab world's most populous country.
Aldar may even want to expand into other booming areas in the Arab world to become a significant player in the industry. In addition, Aldar is partnering Majid Al Futtaim Properties to build digital real estate sales platforms for their enterprises.
While the world economy witnessed the UAE's quick rebound during the worst of times, the real estate market might potentially lure investors from Europe and the US as global migration picks up speed due to several investor- and resident-friendly measures.
Aldar continues to look for value-adding investment possibilities to expand its assets, and part of its expansion ambitions might include more developments hitting the market.