Emaar, a global property developer, reported a 241% increase in first-quarter net profit to Dh2.239 billion, up from Dh657 million in the same quarter of 2021, thanks to strong property sales.
The performance, according to the property giant, demonstrates continued confidence in the Emaar brand as well as the overall recovery of Dubai’s economic activities, led by the real estate market.
Revenue increased by 12% to Dh6.635 billion in the first quarter of 2022, compared to Dh5.921 billion in the same period of 2021.
The Dubai Financial Market-listed company said in a statement that group property sales increased by 17% to Dh8.332 billion in Q1 2021, compared to Dh7.115 billion in Q1 2021.
Emaar Properties’ founder, Mohamed Alabbar, stated that the developer increased its market share in key markets such as Egypt and India, capturing the strong growth in demand in these economies.
“In the coming quarters, Emaar will continue to take advantage of the very attractive supply and demand dynamics in hospitality and shopping malls, which have performed well this year.” “The steps we took last year to strengthen the foundation of the business, including making a significant investment in our talent across all areas, have reinforced this achievement,” said Alabbar.
He believes Emaar is in a good position to execute its clearly defined strategy and generate attractive and long-term returns for all stakeholders.
“Such success is a testament to the UAE’s economic leadership, which is propelling all businesses, including ours, forward.” Digital transformation, new product innovation, and market penetration will define future growth and long-term shareholder value.”
At the end of Q1 2022, the developer had a property sales backlog of Dh45.24 billion, which will be recognized as revenue in the future, demonstrating “the strength of Emaar’s financial position to maintain high revenue, profitability, and returns on equity in the foreseeable future.”
Emaar Development, the UAE’s build-to-sell property development business, which is majority-owned by Emaar Properties, maintained strong property sales momentum in Dubai during the first quarter of 2022, with Dh6.843 billion in sales, up 16 percent from Dh5.883 billion in Q1 2021.
Emaar Development reported a net profit of Dh1.050 billion in the first quarter of 2021, up 34% from the previous quarter, and revenue of Dh3.568 billion. In 2021, the developer reported its highest-ever property sales of Dh27.440 billion, up 335 percent from 2020. Over 4,700 residential units were delivered by Emaar Development in 2021 in prime locations such as Dubai Hills Estate, Dubai Creek Harbour, Downtown Dubai, Dubai Marina, Emaar South, and Emaar Beachfront. Emaar has delivered over 52,000 residential units as of December 2021, with over 24,500 residences currently under construction in the UAE.
Emaar’s international real estate operations continued to improve their operational results in Q1 2022, with property sales of Dh1.474 billion compared to Dh1.211 billion in Q1 2021, a 22% increase over 2021. This reflects the improving real estate market and the growing interest in Emaar’s international expansions and reputable master developments.
Emaar’s international property development businesses generated Dh989 million in revenue in Q1 2022, accounting for 15% of the company’s total revenue, thanks to successful operations in Egypt and India.
Emaar Malls Management, Emaar Properties’ shopping malls, and retail arm saw a 36% increase in revenue in Q1 2022 compared to the same period last year, reaching Dh1.235 billion. Overall net profit for the first quarter of 2022 was Dh635 million, up 136% from the first quarter of 2021. Emaar Malls Management assets improved their leasing occupancy levels to 93 percent, with record tenant sales in The Dubai Mall, surpassing even 2019 numbers. Emaar Malls Management also opened Dubai Hills Mall in Q1 2022.
