Dubai’s Emaar sets quarterly sales record of $3.7bn

Dubai-listed Emaar Properties reported its highest-ever quarterly sales, driven by sustained real estate demand in the emirate.

Sales surged 47 percent year on year to AED13.5 billion ($3.7 billion), the developer said in a statement.

Despite a 9 percent decline in net profit year on year to nearly AED3 billion, net profit before tax rose 16 percent annually to AED4.3 billion.

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Revenue climbed 8 percent to AED6.7 billion in Q1 2024 from AED6.2 billion the previous year, driven by growth in tourism and retail sales.

The revenue backlog from property sales soared to AED78 billion as of March 31, 2024, a 9 percent increase from December 2023, representing future revenue to be recognised over the next four to five years.

“Our confidence in executing our business plans remains high,” said Emaar founder and managing director Mohamed Alabbar. 

“We continue to play a crucial role in the economic landscape of Dubai and beyond,” he added.

Emaar Development, a majority-owned subsidiary, launched 10 projects across various masterplans, achieving a new quarterly record in property sales of just under AED13 billion, up 50 percent year on year. 

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Revenues reached AED3.5 billion, with Ebitda at AED1.7 billion, rising 48 percent from Q1 2023. The sales backlog stood at AED71 billion in the UAE, which will be recognised as revenue in the coming years.

In Q1 2024, revenues of Emaar’s mall and commercial leasing operations reached AED1.4 billion. Tenants reported a 9 percent increase in sales, compared to Q1 2023.  

Emaar’s international real estate operations reported property sales of AED625 million and revenue of AED288 million during the quarter. Revenue from this segment represents 4 percent of Emaar’s total revenue, primarily driven by operations in Egypt and India.

In the first quarter, Emaar’s hospitality, leisure, and entertainment divisions generated AED983 million in revenue, a 10 percent year-on-year increase, thanks to a steady growth in tourism and strong domestic spending. 

Average occupancy at Emaar’s UAE hotels, including those under management, stood at 82 percent in the first quarter.