Emaar Group’s Property Sales Surge by 47% Over the Previous Year

Emaar Group’s Property Sales Surge by 47% Over the Previous Year

Emaar Properties PJSC (DFM: EMAAR) has released its Q1-2024 financial results, showcasing robust performance and operational efficiency across its various business segments.

Financial Highlights

Emaar reported revenues of AED 6.7 billion (US$ 1.8 billion) and a net profit before tax of AED 4.3 billion (US$ 1.2 billion), marking a 16% increase from the same period last year. This growth was driven by a surge in Dubai’s tourism, retail sales, and sustained real estate demand. The company’s focus on improving profit margins and operational efficiencies resulted in a 9% increase in EBITDA to AED 4.4 billion (US$ 1.2 billion) from Q1 2023.

Record Property Sales

In Q1 2024, Emaar achieved its highest-ever quarterly group property sales, reaching AED 13.5 billion (US$ 3.7 billion), a substantial 47% increase over Q1 2023. The revenue backlog from property sales stood at AED 78.3 billion (US$ 21.3 billion) in March 2024, a 9% rise from December 2023, indicating future revenue to be recognized over the next 4-5 years.

Strategic Comments

Mohamed Alabbar, Emaar’s founder, commented, “Emaar started the year with a strong performance, reflecting our strategic focus on sustainable growth and customer satisfaction. Our investments are strategic and result-oriented, yielding solid returns. We remain confident in executing our business plans and continue to play a crucial role in Dubai’s economic landscape.”

UAE Build-To-Sell Property Development

Emaar Development PJSC (DFM: EMAARDEV), a majority-owned subsidiary, launched ten projects across various masterplans and recorded its highest-ever quarterly property sales of AED 12.9 billion (US$ 3.5 billion) in Q1 2024, a 50% increase over Q1 2023. The subsidiary reported revenues of AED 3.5 billion (US$ 953 million) and an EBITDA of AED 1.7 billion (US$ 463 million), a 48% increase from Q1 2023. Emaar Properties’ consolidated revenue from its UAE property development business, including Dubai Creek Harbour, was AED 4.1 billion (US$ 1.1 billion).

New Developments

In Q1 2024, Emaar announced the launch of two new developments: The Heights Country Club & Wellness and Grand Polo Club & Resort. These projects span 140 million square feet and have a combined development value of AED 96 billion (US$ 26 billion), expected to enhance Emaar’s sales and profitability while significantly impacting Dubai’s luxury living market.

Sales Backlog

Emaar has a sales backlog of AED 70.8 billion (US$ 19.3 billion) in the UAE, which will be recognized as revenue in the coming years.

Malls and Commercial Leasing

Emaar’s mall and commercial leasing operations generated AED 1.4 billion (US$ 381 million) in revenue in Q1 2024, with an EBITDA of AED 1.1 billion (US$ 299 million). Tenant sales increased by approximately 9% from Q1 2023, with prime assets achieving nearly 98% occupancy as of March 31, 2024.

International Operations

Emaar’s international real estate operations reported property sales of AED 625 million (US$ 170 million) and revenue of AED 288 million (US$ 78 million) in Q1 2024, accounting for 4% of Emaar’s total revenue. Major contributions came from operations in Egypt and India.

Hospitality, Leisure, and Entertainment

Emaar’s hospitality, leisure, and entertainment divisions generated AED 983 million (US$ 268 million) in revenue in Q1 2024, a 10% increase over Q1 2023. This growth was driven by the tourism industry’s expansion and strong domestic spending. Emaar’s UAE hotels, including managed properties, had an average occupancy rate of 82% in Q1 2024.

Recurring Revenue

Emaar’s recurring revenue portfolio, comprising malls, hospitality, leisure, entertainment, and commercial leasing, generated AED 2.3 billion (US$ 626 million) in Q1 2024, representing 34% of Emaar’s total revenue.

For more details, visit Emaar Properties.

Discover Emaar’s latest financial achievements and strategic initiatives driving growth in Dubai’s real estate market.

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