| 30 May 2024, Thursday |

Emaar’s property sales could hit $5.8bn in 2021

Emaar Development, the company behind the world’s tallest tower Burj Khalifa and Downtown Dubai district, sales could reach $5.85 billion, as activity picks up in the UAE’s real estate market amid a broader economic recovery, a note from EFG Hermes said.

The development arm of Emaar, Emaar Properties, is likelyto record the highest amount of sales in 10 years, the report added.

“ED’s business model has proven resilient amidst the challenges posed since the 2009 real estate crash in the emirate,” the report said.

The company “managed to adapt to all such challenges with its strong balance sheet, backing of its parent company [Emaar Properties], market positioning and unique product mix,” it said.

The UAE’s property market, which softened after a three-year oil price slump that began in 2014 and subsequent oversupply concerns, is showing signs of a revival as end users look to upgrade to larger spaces amid a rise in remote working and learning due to the pandemic.

Economic support measures and government initiatives, including visas for expatriate retirees, remote workers and the expansion of the 10-year golden visa scheme, have also helped to improve sentiment.

The company’s total sales in the next five years are estimated to reach Dh95bn and over the coming 23 years, will touch Dh425bn, the report said. Property sales in 2022 and 2023 are estimated to reach Dh21.5bn and Dh17.7bn, respectively.

“Although sales in Dubai Creek will contribute the most to the total development portfolio, given the size of the projects, we highlight that sales over the coming five years are more evenly scattered between projects in the company’s portfolio,” EFG Hermes said.

Emaar is developing a number of new projects along Dubai Creek to boost its residential portfolio including Creek Edge and Creek

  • The National News