Emaar records impressive growth in group property sales

Emaar Properties has released its financial results for the first half of 2024, showcasing resilient performance and operational efficiency across its various businesses.

A total revenue of AED 14.4 billion and a net profit before tax of AED 7.8 billion were recorded in H1 2024, achieving growth of 17 per cent and 33 per cent respectively, over the same period last year.

The improved performance was driven by sustained investors’ confidence and robust demand in Dubai’s real estate market, strong project execution capability, as well as continued growth in tourism and retail sales.

Emaar’s strategy to improve profit margins and optimise operational efficiencies led to a 24 per cent growth in EBITDA, which rose to AED 8 billion in H1 2024.

Emaar outperformed its Q1 2024 group property sales in Q2 2024 resulting in record group property sales in H1 2024 of AED 31.5 billion, a 56 per cent growth compared to H1 2023.

This robust momentum in property sales further expanded Emaar’s revenue backlog from property sales, which reached AED 90.1 billion at the end of June 2024, up 43 per cent from June 2023 and 15 per cent from March 2024.

This backlog represents future revenue from property sales that will be recognised over the next 4-5 years, indicating sustained profitability.

"Our strategic investments in key locations and other major assets have yielded impressive returns. With a clear 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," said Mohamed Alabbar, founder of Emaar.

UAE Build-to-Sell Property Development

Emaar Development, a majority-owned subsidiary, successfully launched 25 projects across various masterplans and achieved the highest-ever property sales of AED 29.7 billion during the first half of 2024, reflecting a year-on-year growth of 56 per cent.

The consolidated revenue of Emaar Properties from its property development business in the UAE during H1 2024 reached AED 9 billion, including Dubai Creek Harbour.

With a continued uptrend in real estate sales, the backlog of Emaar from property sales in the UAE has reached AED 82.3 billion, 33 per cent higher than December 2023, which will be recognised as revenue in the coming years.

Malls and Commercial Leasing

Malls and commercial leasing operations of Emaar reported revenue of AED 2.8 billion and achieved an EBITDA of AED 2.3 billion in H1 2024.

Retail sales performance of tenants also witnessed growth of over 7 per cent compared to the same period last year. Emaar Malls' prime assets boast occupancy of nearly 99 per cent as of June 30, 2024.

In June 2024, Emaar Malls announced AED 1.5 billion investment to expand Dubai Mall, introducing 240 new shops.

The expansion is expected to attract more visitors and will feature a variety of new international and local luxury retail and F&B options. Additionally, Dubai Mall, in collaboration with Salik, has introduced a paid parking system designed to enhance the guest experience.

Emaar International

During H1 2024, Emaar’s international real estate operations reported property sales of AED 1.8 billion, which grew by 50 per cent compared to H1 2023.

Driven by operations in Egypt and India, international real estate operations recorded a revenue of AED 800 million, which represents 6 per cent of Emaar’s total revenue.

Hospitality, Leisure and Entertainment

In the first half of 2024, Emaar’s hospitality, leisure and entertainment divisions generated AED 1.8 billion in revenue, marking a 9 per cent increase from H1 2023.

The performance was driven by the steady growth in the tourism industry and strong domestic spending. Emaar’s UAE hotels, including those under management, reported an average occupancy of 78 per cent in the first half of 2024.

During the period, Emaar also expanded its hotel portfolio by adding 4 new hotels featuring around 500 keys.

Recurring Revenue

Emaar’s recurring revenue-generating portfolio, including malls, hospitality, leisure, entertainment and commercial leasing, collectively generated revenue AED 4.6 billion during H1 2024. This revenue represents 32 per cent of Emaar’s total revenue.