Gulf Construction Online - Emaar’s Q3 net profit up 20pc, revenue hits $1.6bn

Real Estate

Arabian Ranches III ... a sell-out.

Emaar’s Q3 net profit up 20pc, revenue hits $1.6bn

01 December 2019

Leading UAE-based developer Emaar Properties has recorded a robust 20 per cent increase in its net profit for the third quarter (July to September) which soared to Dh1.331 billion ($362 million), compared to Dh1.11 billion ($302 million) during the same period last year.

Announcing the Q3 results, Emaar says its revenue also surged by 14 per cent to hit Dh6.075 billion during the third quarter of 2019, compared to revenue of Dh5.348 billion during the same period last year.

Emaar recorded property sales of Dh12.624 billion in Dubai during the first nine months (January to September) of 2019, a growth of 25 per cent compared to same period in 2018.

The company attributes these results to its continued focus on its customers and quality of construction, which makes it the first choice for investors. The growth is attributed to the continuous interest from foreign investors in both residential and commercial developments as well as new, first-time home buyers entering the UAE property market, states the developer.

Emaar recorded a revenue of Dh17.644 billion and net profit of Dh4.442 billion in the first nine months of 2019, led by resilient performance of the property, malls and hospitality business, it adds.

On its other unit Emaar Development, chairman Mohamed Alabbar says it had recorded a net profit of Dh2.07 billion and revenue of Dh9.625 billion for the first nine months of the year.

Emaar Development, the UAE build-to-sell property development business majority-owned by Emaar Properties, reported an impressive growth of 25 per cent in property sales during the first nine months, hitting Dh12.5 billion as compared to similar period in 2018.

With the company announcing the launch of 19 new residential developments in 2019 with a total project value of Dh10.13 billion, the sales backlog stands at Dh36.1 billion.

On its Q3 results, Emaar Development says its net profit for the July to September period grew to Dh688 million, while its revenue surged to hit Dh3.39 billion.

Highlighting Emaar’s strong brand value, the company has sold over 70 per cent of its units launched in first nine months of 2019.

During 2019, Emaar had launched properties in the newly-launched master-planned community of Arabian Ranches III, Emaar Beachfront and Dubai Hills Estate, recording a sell-out response and also launched Ease by Emaar, a property management services, helping investors of South Beach at Emaar Beachfront capitalise on an emerging business model of short-term rentals and earn substantial returns.

During the period, Emaar Development has also entered into a new joint venture ‘The Valley’, a Dh25 billion ($7 billion) master development.