Emaar H1 Profit Soars 26% to Dh11.15B Amid Strong Dubai Property Sales
Khaleej Times
Emaar’s H1 net profit rose 26% to Dh11.15 billion on robust property sales and a 21% revenue increase, highlighting Dubai's thriving real estate market.
Emaar Reports Robust Financial Growth in First Half of 2024
Emaar Properties has posted an impressive 26% rise in its net profit for the first half of 2024, reaching Dh11.15 billion. The company saw its revenue climb 21% to Dh23.9 billion from Dh19.8 billion in the same period last year. This growth reflects strong demand and sales activity across Emaar’s development portfolio.
Key Financial Highlights
- Net profit before tax: Increased by 23% to Dh12.8 billion.
- EBITDA: Rose 24% to Dh12.9 billion.
- Property sales: Recorded Dh26.6 billion in H1, supporting a revenue backlog of Dh164.9 billion, up 13% year-on-year.
Emaar attributes these results to diversified contributions across property development, retail, commercial leasing, recurring income streams, and its international operations.
UAE Development Operations Drive Growth
Emaar’s core build-to-sell segment, led by Emaar Development, achieved property sales of Dh22.4 billion for the half-year. Revenue from Emaar Development increased 34% to Dh13.3 billion, while net profit before tax rose 41% to Dh7.8 billion. Including other UAE projects such as Dubai Creek Harbour, total UAE property development revenue surged 30% to Dh17.7 billion.
The UAE development backlog stood at Dh135.7 billion as of June 30, marking a 6% increase from the previous year. During H1, Emaar launched 11 new projects across prime locations like Emaar South, Dubai Hills Estate, and Expo Living.
Emaar also unveiled a significant new masterplan valued at Dh200 billion, expanding its long-term pipeline of developments.
Retail, Leasing, and International Ventures
The company’s shopping malls and commercial leasing portfolio generated Dh3.5 billion in revenue, a 9% uptick year-on-year, with EBITDA rising 10% to Dh3.1 billion. Rental properties maintained a near-full average occupancy rate of 98%.
Internationally, Emaar’s development segment posted Dh4.2 billion in property sales, with revenue increasing 8% to Dh1.1 billion, largely on operations in Egypt and India.
Hospitality and Recurring Revenue Streams
The hospitality and leisure segment delivered Dh1.6 billion in revenue, with hotel occupancy averaging 60%. Recurring revenue — encompassing malls, hospitality, and commercial leasing — contributed Dh5.1 billion, roughly stable year-over-year. Recurring EBITDA was Dh4 billion, about 31% of total group EBITDA.
Leadership Insights and Market Outlook
Mohamed Alabbar, Emaar’s founder, highlighted disciplined execution and a long-term vision as key drivers of the strong first-half performance. He emphasized Dubai’s ongoing economic growth as pivotal for Emaar’s expansion while maintaining its dedication to quality, innovation, and operational excellence.
Implications for Real Estate Agents in Dubai
Emaar’s robust half-year financials and aggressive project launches underscore the dynamic opportunities within Dubai’s property sector. Agents can expect a continued pipeline of new developments fueling buyer interest and secondary market activity. Staying abreast of Emaar’s projects and leveraging high occupancy leasing assets will be crucial to capitalising on Dubai’s vibrant real estate growth.
Based on reporting from Khaleej Times. Summary and analysis by Propilot AI.
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