“Development sales reached $1.7 billion, driving up the company’s net income to $353 million.”

The largest listed developer in Abu Dhabi, Aldar Properties, announced an increase in first-quarter net profit of more than 81% year over year due to increased sales, indicating that the UAE’s property market is still strong despite the ongoing economic growth.

The business stated in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are listed, that net profit attributable to the company’s owners for the three months ending at the end of March increased to Dh1.3 billion ($353 million).

During that time, revenue and rental income increased by 83% annually to Dh5.6 billion. Development sales increased 39% annually to Dh6.3 billion, with 75% of Aldar’s UAE sales coming from foreign and resident expatriate clients (Dh4.6 billion).

“We have achieved a strong balance between recurring income and development sales,” said Aldar Properties Chairman Mohamed Al Mubarak. “We continue to recycle capital into new growth opportunities.”

“Our diverse real estate platforms will continue to expand at their current pace in the upcoming period.”

Due to government efforts and economic progress, the UAE’s real estate sector is still seeing rapid growth.

According to ValuStrat, Abu Dhabi had 2,238 off-plan sales transactions last year, representing 75.1% of total sales. This is a 39.4% increase over the same time in 2022.

Additionally, the number of ready-to-move-in sales increased by 36.5% to 740 last year.

The country’s market for luxury real estate is rising as well. According to Knight Frank, this month, sales of residences costing $10 million or more than quadrupled to $7.6 billion in 2023, setting a record that outperformed both London and New York.

Although there was a 91% increase in sales within the price range in the previous year, only 28% of the 431 deals were finished in the latest quarter.

With the demand for opulent real estate in the UAE capital rising, Aldar last month sold the most expensive condominium in the emirate for Dh137 million.

At Nobu Residences Abu Dhabi on Saadiyat Island, the three-bedroom penthouse that occupied a full floor sold for more than Dh96,000 per square meter, the highest price per square meter in the UAE.

In recent quarters, Aldar, the developer of Yas Mall and Ferrari World, has also undertaken a number of purchases in an effort to diversify its investment portfolio both organically and inorganically.

In an effort to broaden its worldwide reach, the business acquired UK developer London Square for Dh1.07 billion last year, its first purchase outside of the Mena area.

The company’s Aldar Estates division purchased FAB Properties in September; the latter offers property management services in the United Arab Emirates.
It paid Dh1 billion earlier this year to purchase seven important logistics hubs as well as a nearby property piece in Dubai Investments Park.

Talal Al Dhiyebi, group chief executive of Aldar, stated, “Our investment portfolio continues to show solid organic growth on the back of a strong macroeconomic backdrop, along with our acquisitions maintaining our earlier forecasts’ superiority and significantly enhancing financial performance.”

Aldar opened its first building earlier this year on the Saadiyat Island Marina District. It has 372 studios as well as one, two, and three-bedroom apartments.

According to Mr. Al Dhiyebi, the firm is anticipating growth this year “through our strong development pipeline and new opportunities to expand our recurring income portfolio.”

Aldar’s chief finance and sustainability officer, Faisal Falaknaz, told The National last month that the company hopes to raise its sales to up to Dh31 billion this year and is considering issuing benchmark green sukuk to help achieve its goals for sustainability and growth.

 

Aldar’s officially recognized brokerage Henry Wiltshire International, offers expertise in Aldar’s trademark projects, with an excellent sales record in famous Aldar projects like Mayan, Water’s Edge, West Yas, Yas Acres, Lea, Mamsha Saadiyat, to name a few.

For assistance in buying or leasing property, feel free to contact us at +971 56 484 3380 or abudhabi@henrywiltshire.com

 

 

 

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