8.7 billion dirhams, listed Emirati real estate profits in 2021

Profits of listed real estate companies in the financial markets of the United Arab Emirates rose to 8.7 billion dirhams last year, up from 5.79 billion dirhams in 2020, an increase of 50.2%, while their annual return was about 53.86.

Emaar Properties accounted for about 50% of the profits, according to a study by Vision for the results of 6 real estate companies listed in the Dubai and Abu Dhabi markets. , Theor Development and Emaar Developments.

The role of the lion

Emaar Properties and Emaar Developments have captured more than 80% of the industry’s profits in the past year.

Emaar Development Company is the largest in terms of profit on an annual basis – in terms of growth rate.

Last year, Thear Development was able to turn its losses into profits, while Union Properties suffered an annual loss last year.

Fourth quarter

In the fourth quarter of last year, real estate companies recorded a profit of 1.98 billion dirhams, a significant increase in profits to 157%, compared to 767.85 million dirhams in 2020. Revenue from real estate development companies increased last year to 53.86 billion dirhams. 45% growth in 2017 compared to 37.13 billion dirhams. Emaar Properties captured more than half of the industry’s revenue, and Emaar Development accounted for 30% of total revenue.

On a quarterly basis, Emaar companies topped the profit growth rate as the company was able to double its profits by more than 22 times, while Emaar Development’s profits increased by 188% in the last quarter of the year.

Historical sales

Rat Diab, vice president of investment research and strategies at Comco Invest, said profits from most real estate firms in the United Arab Emirates rose last year with a recovery in economic activity.

Diab points out that Emaar Properties, which is supported by strong performance from shopping malls, retail and hospitality businesses, recorded its highest sales since the beginning, while real estate sales rose 209%, reaching a net profit of 3.8 billion dirhams, with 80% growth. , The company’s overseas and international operations boosted its improved operating results over the past year.

He continued, “Emaar Development’s profit increased, reaching 3.2 billion dirhams, recording an all-time high sales rate in 2021, supported by inventory sales and a number of newly launched projects.”

He noted that with the growing confidence in the real estate market in Abu Dhabi, Aldar Properties had a positive impact on the real estate sector’s profit growth, with its profit increasing by 20% to 2.3 billion dirhams. Capital-approved incentives and investment outside the country to diversify its business and ensure future prosperity.

Improved real estate market

Profits of Ras Al Khaimah Real Estate and Al Thiar increased with the improvement in the real estate market conditions, while the profits of the Union assets decreased significantly as the company took several measures to deal with the losses and restructure its debt. Reduces operating costs, while Damac reduces its losses by 18%.

There is a significant recovery in the real estate sector in the United Arab Emirates, with the strong results of its companies, Diab pointed out.

Commenting on the increase in profits in the last quarter of the year, Diab said that this growth was due to the large turnaround in business activity in the Emirates during that period, which was reflected in the improvement in sales since the start of business. The fading of the corona fall was one of the first countries in the UAE to ease controls, which encouraged a return to a more normal life.

Strong financial position

He continued, “The UAE market is also experiencing a strong financial position, and incentives and soft and flexible laws have supported the sector’s sales growth in the last quarter of the year after the return to operations.”

For his part, Ali Hammoodi, a financial analyst and international CEO of the Islamic Investment and Development Bank of Iraq, attributed several factors to the significant recovery in the UAE real estate market in the fourth quarter of last year. Dubai Expo 2020, which contributed to the rise in prices.

Hammoody pointed out that among the factors that have encouraged the recovery of the sector are the government efforts represented by the facilities for establishing Golden Visas and businesses.

Expo effect

For his part, Wada al-Taha, a financial analyst and member of the advisory board of the securities and investment firm, said the real estate sector had a good performance in the UAE markets last year, especially in the last quarter. Expo 2020 coincided with a strong increase in occupations, especially the year that saw the best performance in Dubai.

Al-Taha said the industry’s strong performance was driven by Emaar, which recorded a significant increase in profits backed by the company’s strong performance; Must excel in the field at the Dubai and Abu Dhabi levels.

Al-Taha noted that the sector is still plagued by supply and demand gaps, which is why all parties in the sector must agree to develop a stimulus strategy led by the regulator to increase demand ratios.

Emer properties

Emaar’s net profit was about 3.8 billion dirhams in 2021, an increase of 80% compared to 2.1 billion dirhams in 2020.

The company’s sales are up 209% to 33.76 billion dirhams, compared to 10.9 billion dirhams in 2020.

Emaar’s international operations continued to improve its operating results, recording 6.244 billion dirhams in 2021, compared to 4.58 billion dirhams in 2020, a growth of 36%, highlighting the recovery and great interest in the real estate market. Emar’s international expansions and key credible development plans.

Emaar International Business recorded revenues of 5.09 billion dirhams, an increase of 66% over the previous year, accounting for 18% of total revenues supported by successful operations in Egypt, India and Pakistan.

Emaar has a comprehensive development plan and a large amount of land, not to mention a strong base of loyal customers and a dedicated and dedicated team, which enhances the company’s ability to achieve attractive and sustainable returns to its shareholders.

Emaar recorded revenue of AED 28.27 billion in 2021, a 57% increase over 2020, on the back of strong real estate sales and strong performance in mall, retail and hospitality revenues.

Emer development

Emaar Development, which owns a majority stake in Emaar Properties, recorded a net profit of 3.244 billion dirhams in 2021 and revenues of 15.6 billion dirhams, an increase of 96% and 60% compared to 2020, respectively.

The company recorded an unprecedented 27.44 billion dirhams in real estate sales in 2021, 335% higher than in 2020.

Union properties

Union assets turned into a loss of 903.8 million dirhams last year, compared to a profit of 185.5 million dirhams in 2020.

Shareholder equity is down 903.8 million dirhams compared to 2020, while total assets are down 1.549 billion dirhams in 2021 over the previous year.

The company’s revenue has increased from 375.86 million dirhams in 2020 to 402.4 million dirhams in 2021.

Theor development

Last year, the company reported a net profit of 50.8 million dirhams, compared to a loss of 216.9 million dirhams in 2020 and returned to profit, and the company recorded 504.9 million dirhams in 2020 compared to 412.9 million dirhams.

Altar Real Estate

Aldar earned 3.60 billion dirhams in 2021, an increase of 21% per year, while net profit increased by 2.33 billion dirhams, 21%.

The company’s revenue was 8.58 billion dirhams last year, up 2% year-on-year, recording record sales of 7.2 billion dirhams, supported by the introduction of new programs at prices tailored to various segments.

These excellent financial results were driven by the strong performance of the Aldar Development Unit and the continued revenue portfolio growth of the Aldar Investment Unit.

Ras Al Khaimah

Ras Al Khaimah real estate profit increased by 77% to 20.5 million dirhams in 2021 compared to 113.5 million dirhams in 2020, while its revenue rose to 515.6 million dirhams, an increase of 243.5 million dirhams compared to the previous year. 112%.