Emaar’s property sales hit AED31.5 billion in H1 2024
Several factors boost the company’s bottom line
Emaar Properties, the Dubai-based global property developer and provider of premium lifestyle offerings has announced its financial results for the first half of 2024, highlighting continued resilience and operational efficiency across its diverse portfolio.
Emaar Properties posted total revenue of AED14.4 billion ($3.9 billion) and a net profit before tax of AED7.8 billion ($2.1 billion), marking increases of 17% and 33%, respectively, compared to the same period last year.
This growth was fuelled by sustained investor confidence, strong demand in Dubai’s real estate sector, effective project execution, and increased tourism and retail sales.
The company’s strategic focus on enhancing profit margins and operational efficiency resulted in a 24% increase in EBITDA, reaching AED8 billion ($2.2 billion) in H1 2024.
Emaar exceeded its Q1 2024 property sales with record group property sales in H1 2024 amounting to AED31.5 billion ($8.6 billion), a remarkable 56% increase from H1 2023.
The company’s revenue backlog from property sales surged to AED90.1 billion ($24.5 billion) by the end of June 2024, reflecting a 43% year-on-year increase and a 15% rise from March 2024. This backlog represents future revenue anticipated to be recognised over the next 4-5 years, signalling ongoing profitability.
Strategic Insights
Mohamed Alabbar, Chairperson of Emaar Properties, said: “Emaar delivered remarkable results in the first half of the year, reflecting our commitment to long-term success and customer satisfaction. Our strategic investments in critical locations and significant assets have yielded impressive returns.
“With a vision and pragmatic approach, we maximise value for our stakeholders. We are confident in executing our business strategies and proud of our significant contribution to Dubai’s economic landscape and reinforcing its global leading position.”
Property development
Emaar Development, a majority-owned subsidiary, launched 25 new projects across various expert plans, achieving a record AED29.7 billion ($8.1 billion) in property sales during H1 2024, a 56% increase over the same period in 2023.
The company reported revenues of AED7.3 billion ($2 billion) and an EBITDA of AED3.4 billion ($925 million) for H1 2024, reflecting 65% and 47% growth rates, respectively.
Emaar Development also unveiled two major luxury living expert plans: The Heights Country Club & Wellness and Grand Polo Club & Resort. These projects span over 140 million square feet and have a combined value of AED96 billion ($26 billion), aiming to enhance the quality of life and well-being across Dubai.
Malls and commercial leasing
Emaar’s malls and commercial leasing division reported revenue of AED2.8 billion ($760 million) and EBITDA of AED2.3 billion ($626 million) for H1 2024. Tenant retail sales grew by over 7% compared to last year’s period, with prime mall assets maintaining an occupancy rate of 99% as of 30 June 2024.
In June 2024, Emaar Malls announced an AED1.5 billion ($408 million) investment to expand Dubai Mall, adding 240 new shops. This expansion is expected to attract more visitors and introduce a range of new international and local luxury retail and F&B options.
Dubai Mall, promoted as one of the most visited retail places on Earth, had 105 million visitors in 2023. It continued to see robust traffic, with 57 million visitors recorded in H1 2024, an 8% increase from the previous year.
Emaar’s strong performance in the first half of 2024 underscores its successful strategic initiatives and pivotal role in Dubai’s economic landscape.
Featured image: Emaar Properties enjoys resilience and operational efficiency across its diverse portfolio. Credit: Emaar Properties
