Emaar Properties has reported exceptional financial results in 2023. It posted a net profit of AED8.2 billion in the first nine months of the year. This achievement represents a 42 percent year-over-year growth, underlining the company’s resilience in the ever-evolving real estate market.
The impressive figures have been driven by robust revenues of AED18.4 billion. In turn, this has been bolstered by the thriving tourism sector, surging retail sales, and increased demand for real estate.
Record property sales
Emaar’s success story continues as the company recorded a 16 percent year-over-year growth in group property sales. Sales reached AED31.1 billion for the first three quarters of 2023. This accomplishment has resulted in a revenue backlog from property sales reaching AED69.5 billion as of September 30. According to the company, this signifies a promising outlook for revenue recognition in the years to come.
Mohamed Alabbar, founder of Emaar, expressed his optimism about the company’s performance and its commitment to loyal and new customers. He attributed Emaar’s financial success to strategic investments and the returns they have yielded.
“Our financial performance, underscored by recent credit rating upgrades, reflects our strategic investments and their ensuing returns”, he stated. “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,” he added.
Emaar Development’s impressive growth
Emaar Development, a subsidiary of Emaar Properties, has also made a significant development in 2023. The company reported a 43 percent increase in net profit, reaching AED4.1 billion for the first nine months of the year. This notable growth is a result of a 25 percent increase in property sales, which reached AED28.9 billion. That is compared to AED23.2 billion during the same period in 2022.
Emaar Development attributes its success to the launch of 20 new projects, which are laying the foundation for future growth. The company also reported a substantial sales backlog of AED59.6 billion that will be part of its revenue in the upcoming years.
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Dubai’s booming property market
The unprecedented property boom in Dubai, which saw record numbers last year, continues to flourish in 2023. Residential sales have already exceeded last year’s levels in the first 10 months of this year. According to CBRE Group Inc, Dubai recorded 93,590 transactions through the end of October, surpassing the 92,178 recorded in all of 2022. However, October did witness a slight slowdown in the number of sales, falling by 23.6 percent. That is due to the decrease in new off-plan projects that were offered. Off-plan developments have experienced high demand since 2022, with 90 percent of all homes in prime locations already sold. Furthermore, over 67 percent of such properties across the city have also found buyers, according to CBRE.
Emaar Properties’ exceptional performance, driven by strong sales and strategic investments, stands as a testament to the resilient real estate market in Dubai. With a promising outlook for the remainder of 2023, Emaar is poised for continued success.
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