Dh19.3b in property sales, Dh127b backlog support 27% rise in profits as demand holds firm
Emaar Properties delivered a strong financial performance in the first quarter of 2025, buoyed by robust real estate demand in Dubai, a series of successful project launches, and continued investor confidence across its diversified portfolio. The company posted a 50% year-on-year increase in revenue, reaching Dh10.1 billion ($2.8 billion), while earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 24% to Dh5.4 billion ($1.5 billion).
Net profit before tax also climbed 27% from a year earlier to Dh5.4 billion ($1.5 billion), supported by solid operational performance and higher-margin developments. Property sales during the quarter totalled Dh19.3 billion ($5.3 billion), representing a 42% jump compared to the same period last year. As of March 31, Emaar’s property sales backlog stood at Dh127 billion ($34.6 billion), up 62% year-on-year—a figure that points to sustained revenue visibility in the coming quarters.
Founder Mohamed Alabbar remarked, “These results are more than numbers; they reflect the ambition of a team that refuses to stand still, and a community that inspires us to go further. At Emaar, we don’t follow momentum — we create it.”
Business segments maintain growth
Aside from Emaar Development PJSC, the group’s UAE-focused build-to-sell subsidiary, recording its highest-ever quarterly sales, reaching Dh16.5 billion ($4.5 billion), a 28% increase from Q1 2024, Emaar’s recurring revenue segments—covering shopping malls, commercial leasing, hospitality, and entertainment—continued to support overall group performance. Mall operations posted Dh1.5 billion ($408 million) in revenue, with average occupancy across assets remaining at 98%. Meanwhile, the hospitality, leisure and entertainment arm generated Dh1.1 billion ($299 million), bolstered by an 82% average occupancy rate at UAE hotels during the period.
Internationally, Emaar’s operations contributed Dh2.8 billion ($762 million) in property sales and Dh626 million ($170 million) in revenue, with notable activity in India and Egypt. These accounted for roughly 6% of total group revenue in Q1 2025.
Across all recurring revenue lines, Emaar earned Dh2.6 billion ($707 million) in revenue, with an EBITDA contribution of Dh2 billion ($545 million)—representing 37% of total group EBITDA.
Outlook and ratings
Emaar’s credit strength was recognised with an S&P Global upgrade to BBB+ with a stable outlook. The company also notched its third ESG rating upgrade in four years from MSCI, aligning with its ongoing sustainability initiatives. These include increased resource efficiency, improved waste management practices, and responsible sourcing.
With robust financials, a record development pipeline, and continued growth across recurring revenue streams, Emaar is positioned to maintain its momentum through the remainder of 2025.
Source: Gulf News (May 08, 2025 | 16:05)