Emaar Development reported soaring profit in the first half of the year backed by higher sales and project deliveries.
The UAE build-to-sell property developer majority-owned by Emaar Properties, booked a 73% rise in net profit in the second quarter of 2018 to AED 997mn ($271mn), compared to AED 575mn in Q2 2017.
Revenue for the three months to June 30 was AED 3.72bn, up 145% on the Q2 2017 revenue of AED 1.52bn.
Net profit of AED 1.82bn during the first six months of 2018 was an increase of 68% compared to AED 1.08bn during the same period last year.
Six-month revenue was AED 6.99bn or is 119% more than the H1 2017 total of AED 3.19bn, underpinned by the progress in construction and timely project delivery.
Highlighting the strong investor appeal for Emaar Development’s residential launches, the company reported total sales of AED 6.23bn during H1 2018.
Emaar now has a total sales backlog of over AED 38.50bn, majority of which will be recognised as revenue over the next three to four years.
In the first half of the year, Emaar Development launched the sale of over 3,600 residential units across its mega developments in Dubai. It now has a development pipeline of over 60 residential projects in the UAE with over 28,000 units.
Construction is progressing as per schedule for handover of the first waterfront homes in Dubai Creek Harbour – the Dubai Creek Residences in Creek Island Dubai – next year. Time-bound milestones have been achieved for the delivery of homes in Dubai Hills Estate, Emaar South, Emaar Beachfront and Downtown Dubai too.
Mohamed Alabbar, chairman of Emaar Development and Emaar Properties, said: “Emaar’s residential destinations are city hubs of the future with their exceptional location, build quality, spectacular views and the lifestyle amenities we offer in our integrated developments.
“Developing premium real estate assets is our core strategy for Dubai and the resurging investor enthusiasm to our property launches underlines their trust in our focus on quality and design. We will continue to seek opportunities for developing property assets that create long-term value for our stakeholders.”
Emaar also announced a strategic partnership with Aldar for a new joint venture to develop the world’s next era of iconic destinations that will shape the UAE’s ever-evolving skyline. The JV has a targeted AED 30bn development pipeline with an initial focus on two projects in Abu Dhabi and Dubai.