Emaar Development, the UAE build-to-sell property development business majority-owned by Dubai developer Emaar Properties, has achieved one of the highest quarterly sales during the first quarter (January to March) of 2019 underpinned by the exceptional sales of residences launched by the company.
Announcing the results for the first three months, Emaar said it had recorded a 51 per cent sales growth in Q1 which rose to Dh5.9 billion ($1.6 billion) from the last year's figure of Dh3.9 billion ($1.1 billion).
The company's net profit for the period rose to Dh751 million ($204 million), while its revenue hit Dh3.341 billion ($910 million) for the first quarter of 2019.
Emaar Developments total sales backlog increased to Dh37.7 billion ($10.3 billion), underlining the strong financial fundamentals of the company and the remarkable revenue recognition to be achieved in the coming three to four years, said the Dubai company.
During the three-month period, Emaar Development had launched eight new projects worth a total value of Dh4.4 billion ($1.2 billion), it added.
Emaar Development said its sales to international investors more than doubled during the period to hit Dh2.64 billion ($720 million) from Dh1.187 billion ($323 million) last year.
There was significant and continued interest from investors and end users, regionally and globally, led by the UAE residents and investors from Saudi Arabia, China, United Kingdom and India, with investments by some of Emaars customers doubling in Q1 2019.
There was significant growth in sales to investors from Pakistan and Egypt, said the statement.
Sales to non-UAE residents represent over 45 per cent of total sales recorded highlighting the significant interest of international investors in Dubai real estate and the strength of Emaar brand, it added.
The primary driver of growth in sales is the robust Dubai economy, with all key sectors including travel, tourism, aviation, hospitality, logistics and financial services, as well as technology, clean energy and healthcare reporting positive performance.
Emaar Development and Emaar Properties Chairman Mohamed Alabbar said: "The positive performance is led by our UAE development strategy that focuses on four pillars: leveraging the strength of our master developments; product innovation to offer unique products for millennials and the new generation of customers; reaching out to international customers; and well-planned execution and delivery."
"Dubais robust economic performance, strong fundamentals and promising future outlook and the forward-looking policies to energise the property market, including the provision of long-term visas, continue to drive investor interest, enabling us to add consistent value for our stakeholders," he stated.
According to him, several of Emaar Developments new launches of residential projects in Dubai recorded sell-out response.
Among the key launches were Arabian Ranches III, a secure gated townhouse neighbourhood defined by several exceptional features including a central park, a 4-km long boulevard, a lazy river, a wide choice of outdoor sports facilities, community parks with play areas for children, as well as wellness and sports facilities for all, he added.
The unveiling of four phases of Expo Golf Villas in Emaar South, the green golf course mega-development located only 10 minutes from the Expo 2020 Dubai site and seven minutes from the Al Maktoum International Airport, also recorded sell-out investor response.
With its focus on product innovation for the new generation of customers, Dubai Hills Estate launched the Executive Residences offering the opportunity for investors to obtain a complimentary 3-year renewable business licence and renewable residency visa, while they paid only 20 per cent of the apartment price, through a partnership with DMCC (Dubai Multi Commodities Centre).
Dubai Creek Harbour, the six square kilometre mega-development, described as The World of Tomorrow unveiled several residential projects such as the Palace Residences, a five-star waterfront branded residence development, which was also received by strong investor interest, said Alabbar.
Emaar has a global investor base of over 200 nationalities and is the worlds largest property company outside China, with a brand value of over $2.7 billion, he added.
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