Emaar Development, the UAE build- to-sell property development business that is majority-owned by Emaar Properties PJSC (DFM: EMAAR), achieved in Q1 2024 (January to March) a 50% increase in property sales reaching AED 12.9 billion (US$ 3.5 billion) compared to AED 8.6 billion (US$ 2.3 billion) in Q1 2023. This performance resulted from Emaar Development's successful property launches, which created a good revenue pipeline for the future and marked steady progress towards the company's strategic initiatives to further cement its position as a trusted developer.
Emaar Development successfully launched 10 projects across various master plans during the first quarter of 2024.
During the first quarter of 2024, Emaar made a significant acquisition of a land plot measuring 60 million square feet near to The Oasis masterplan, with a development value of AED 41 billion (US$ 11 Billion). This compliments the 81 million square feet of land purchased in December 2023 in the same vicinity. Emaar announced the launch of these two major developments on these lands as well: The Heights Country Club & Wellness and Grand Polo Club & Resort, spanning over a total 141 million square feet of land, with a combined development value of AED 96 billion (US$ 26 billion).
Anticipated to enhance Emaar's sales and profitability, these developments not only demonstrate Emaar's vision to create the highest standards of luxury living experiences, but also strategically position the company to launch a substantial number of villas and townhouses, which are expected to boost sales and profitability, reinforcing our position as a leading global property developer.
In the first quarter of 2024 (January to March), Emaar Development reported an EBITDA of AED 1.7 billion (US$463 million), 48% higher than Q1 2023.
Emaar now has a sales backlog of AED 65.7 billion (US$ 17.9 billion), which will be recognized as revenue in the coming years due to robust performance.
Emaar's founder, Mohamed Alabbar, said: " The company began the year 2024 with strong financial results, which demonstrate our superior sales execution capabilities as well as our ongoing efforts to further enhance operational efficiencies. Our growing backlog reflects the strong demand in our primary markets. Our strategic positioning allows us to accelerate growth and deliver unmatched value to our shareholders, thereby reinforcing our role in Dubai's economic vitality."
Dubai continues to lead as a business hub for trade, financial services, logistics, travel, and hospitality, with growth in emerging sectors such as technology, renewable energy, healthcare, and education. As evidenced by Emaar Development's sales growth in the first quarter of 2024, the region attracts a community of skilled professionals and a continued investment in the region's consistent growth potential.
