Emaar Development, a Dubai-based property development company specializing in build-to-sell assets and primarily owned by Emaar Properties, showed strong performance in the third quarter of 2024
In the first nine months of 2024, property sales surged by 66 percent to reach AED48 billion ($13.06 billion), compared to AED28.9 billion ($7.86 billion) during the same timeframe in 2023. The successful launch of 50 projects across various masterplans during this period further reinforces Emaar’s position as a market leader and sets the stage for continued growth.
For the first nine months of 2024 (January to September), Emaar Development reported revenues of AED12.5 billion ($3.4 billion) and an EBITDA of AED6 billion ($1.6 billion), marking increases of 69 percent and 35 percent, respectively, over the same period in 2023. With a sustained upward trend in sales, Emaar’s sales backlog has reached AED83.7 billion ($22.8 billion), representing a 47 percent rise since December 2023, which will be recognized as revenue in the upcoming years.
Sustainable value creation
Mohamed Alabbar, founder of Emaar, stated that the company’s performance in the quarter reflected the confidence and trust customers have in Emaar’s vision. He emphasized the importance of continuous innovation and staying ahead of market trends to create experiences that resonate with evolving lifestyles. Alabbar highlighted that the strategy focuses on delivering sustainable value for both customers and shareholders, driving growth in alignment with Dubai’s ambitions.
Dubai’s real estate success
In October 2024, Alabbar noted that Dubai’s real estate revenue had exceeded that of the United Kingdom the previous year and was projected to experience a 50 percent increase that year. This observation was made during the launch of the second phase of the Dubai Land Department’s (DLD) Dubai Real Estate Brokers Program.
Supporting Emirati talent
Aligned with the emirate’s vision for excellence and leadership, the Dubai Land Department initiated the second phase of the program, which includes registration for the first 1,000 new participants from UAE nationals. This initiative aims to develop and support Emirati talent, empowering them to engage in the real estate sector and contribute to sustainable development.
Dubai’s property market boom
According to data from Property Finder, Dubai’s registered sales transactions reached 133,134 in 2023, a notable increase from 96,459 in 2022. The total value of sales transactions hit an all-time high of AED411.74 billion, compared to AED264.34 billion the previous year. This growth was particularly driven by off-plan sales, which amounted to AED160.46 billion in 2023, a significant rise from AED93 billion in 2022, reflecting a 72.3 percent increase.
Off-plan sales leading growth
Off-plan transactions accounted for 39 percent of the total transaction value, achieving the highest value ever recorded in the off-plan market.
Factors contributing to Dubai’s appeal
What makes the Dubai property market more appealing than those in other international hubs? Here are five key factors:
- Golden Visas: The Golden Visa program in Dubai provides long-term residency and business opportunities, drawing considerable foreign investment into the property sector.
- Economic stability: With a robust economy, political stability, and a strategic location, Dubai serves as a safe haven for real estate investment, especially when compared to some other markets.
- Lifestyle and amenities: Dubai boasts world-class infrastructure, a luxurious lifestyle, and a wide array of amenities, including high-quality schools, healthcare facilities, and entertainment options, making it an attractive destination for living and investing.
- Off-plan sales: The popularity of off-plan sales in Dubai enables investors to buy properties in the early stages, often with appealing payment plans and the potential for substantial returns.
- Government support: The Dubai government has established various policies and initiatives to bolster the real estate market, such as affordable housing programs and infrastructure development.
Advancing Dubai’s vision
The Dubai Real Estate Brokers Program is part of the Dubai Social Agenda 33, which aims to triple the number of Emiratis in the private sector, ensuring self-sufficiency and promoting social and family stability. Additionally, it aligns with the Dubai Economic Agenda D33, which seeks to integrate 65,000 members of the new Emirati generation into the workforce, further enhancing Dubai’s position as a hub for national talent and a global center for excellence and innovation.
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