Emaar Properties achieved one of the highest quarterly property sales in Dubai during the first quarter (January to March) of 2019 recording an increase of 53 per cent to AED 5.979 billion (US$ 1.628 billion) compared to the Q1 2018 sales of AED 3.906 billion (US$ 1.063 billion).
The sales to international customers more than doubled in Q1 2019 to AED 2.645 billion (US$ 720 million) compared to AED 1.187 billion (US$ 323 million) in Q1 2018, highlighting the significant interest of international investors in Dubai real estate and the strength of Emaar brand.
Dubai has emerged as a global hub for all businesses including financial services, logistics, travel, hospitality and trade, and is steadily growing in other sectors such as healthcare, technology and clean energy. This growth in these businesses is nurturing a strong and diverse knowledge base and community of trained professionals. The growth in the knowledge economy and the vibrance of city are the primary drivers of the growth in sales of real estate recorded by Emaar in the first quarter of the year.
Key Performance Highlights
Emaar reported a net profit of AED 1.742 billion (US$ 474 million) in Q1 2019 compared to the net profit of AED 1.625 billion (US$ 442 million) during the same period in 2018. Q1 2019 revenue was AED 5.894 billion (US$ 1.605 billion), similar to the revenue in the first quarter of 2018.
Emaar’s sales backlog, reflecting the revenues to be recognised over next three to four years, increased from AED 48.404 billion (US$ 13.178 billion) as of Q4 2018 to AED 50.012 billion (US$ 13.616 billion) at the end of Q1 2019. Emaar has a sales backlog in Dubai of AED 37.960 billion (US$ 10.335 billion) similar to the backlog in Q1 2018 in spite of the significant increase in revenue to AED 15.411 billion (US$ 4.196 billion) in 2018.
The strong backlog reflects the robustness of Emaar’s financial position to maintain high revenue, profitability and return to shareholders in the foreseeable future.
Mohamed Alabbar, Chairman of Emaar Properties, said: “Our focus on timely project execution and cash flow generation underlines our market leadership. Emaar’s operational strategy of building premium residential assets, and expanding the malls, hospitality and entertainment operations to meet the aspirations of the new generation of customers continues to drive our growth. The surge in sale of Emaar’s real estate developments in Dubai to international investors not only highlights Dubai’s position as the region’s leading business centre and hub city, but as the one of the most dynamic and growing market economies.”