Emaar records 123pc rise in global investors in Q1
Leading UAE developer Emaar Properties has recorded a 123 per cent growth in sales of properties to international customers during the first quarter (January to March), which surged to Dh2.65 billion ($720 million) from Dh1.187 billion ($323 million) last year, thus highlighting the significant interest of overseas investors in Dubai real estate and the strength of Emaar brand.
Announcing the first quarter results, Emaar said it had registered one of the highest quarterly property sales in Dubai during the first three months to hit Dh5.97 billion ($1.63 billion), up 53 per cent over Dh3.9 billion ($1.06 billion) last year.
Emaar's net profit for the period rose to Dh1.742 billion ($474 million) from Dh1.625 billion ($442 million). However, the revenue for the first three months stood at Dh5.894 billion ($1.605 billion), similar to the last year's figures, it added.
The master developer said Dubai had emerged as a global hub for all businesses including financial services, logistics, travel, hospitality and trade, and is steadily growing in other sectors such as healthcare, technology and clean energy.
This growth in these businesses is nurturing a strong and diverse knowledge base and community of trained professionals,, it stated.
The growth in the knowledge economy and the vibrance of city are the primary drivers of the growth in sales of real estate recorded by Emaar in the first quarter of the year, it added.
Emaar’s sales backlog, reflecting the revenues to be recognised over next three to four years, increased from Dh48.404 billion ($13.178 billion) as of Q4 2018 to Dh50.012 billion ($13.616 billion) at the end of Q1 2019. The developer has a sales backlog in Dubai of Dh37.960 billion ($10.335 billion) similar to the backlog in Q1 2018 in spite of the significant increase in revenue to Dh15.411 billion ($4.196 billion) in 2018.
The strong backlog reflects the robustness of Emaar’s financial position to maintain high revenue, profitability and return to shareholders in the foreseeable future.
On the impressive results, Chairman Mohamed Alabbar said: "Our focus on timely project execution and cash flow generation underlines our market leadership. Emaar’s operational strategy of building premium residential assets, and expanding the malls, hospitality and entertainment operations to meet the aspirations of the new generation of customers continues to drive our growth."
"The surge in sale of Emaar’s real estate developments in Dubai to international investors not only highlights Dubai’s position as the region’s leading business centre and hub city, but as the one of the most dynamic and growing market economies," stated Alabbar.
Emaar Development, the UAE build-to-sell property development business majority-owned by Emaar Properties, recorded a Q1 2019 revenue of Dh3.341 billion ($910 million) compared to Dh3.265 billion ($889 million) last year.
The quarter also highlighted several firsts by Emaar including the provision of a complimentary three-year renewable business license and renewable residency visa for investors in the Executive Residences in Dubai Hills Estate, said the statemenrt from Emaar.
Further, Emaar recently launched the first real estate project in collaboration with the fashion icon of the Arab world - Elie Saab at Emaar Beachfront.
Emaar also launched Arabian Ranches III, a secure gated townhouse neighbourhood as well as three phases of Expo Golf Villas in Emaar South, which recorded sell-out investor response, it stated.
Dubai Creek Harbour, the six square km mega-development, described as ‘The World of Tomorrow’ unveiled several residential projects including Palace Residences.
Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties, reported a growth of 4 per cent in Q1 2019 revenue to Dh1.075 billion ($293 million) compared to Q1 2018.
Emaar Malls assets maintained strong occupancy levels at 92 per cent, and robust visitor arrivals at 36 million during Q1 2019, 3 per cent higher than 35 million visitors during Q1 2018.
According to the Dubai developer, Emaar Malls is today one of the world’s largest mall operators with a total gross leasable area of 6.7 million sq ft.
In line with its omnichannel retail strategy, earlier this year, Emaar Malls fully acquired Namshi, the leading regional fashion e-commerce retailer. This follows the Group acquiring the remaining stake of Global Fashion Group (GFG) in Namshi, in an all-cash transaction of Dh475.5 million ($129.5 million), it stated.
The hospitality and leisure, entertainment and commercial leasing businesses of Emaar together recorded revenue of Dh738 million ($201 million), with the hotels under Emaar Hospitality Group (including managed hotels) reporting an average occupancy of 87 per cent, higher than the industry average.
Highlighting the diversified recurring revenue streams of Emaar, the company’s malls & retail, hospitality & leisure, entertainment and commercial leasing, together with a revenue of Dh1.816 billion ($494 million) now account for 31 per cent of the total Group revenue, said the statement.
Emaar has a landbank of over 1.6 billion sq ft in key markets and is the world’s largest property company outside China, with a brand value of over $2.7 billion, it added.
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