Dubai’s Emaar Properties has reported record annual real estate sales records and profitability on the back of booming property sales last year.
At the same time Emaar recognised revenue of AED24.9bn ($6.8bn) in 2022, supported recurring revenue businesses due to the rebound of global tourism.
Earnings and net profit for 2022 increased by 18 per cent and 80 per cent, respectively, to AED9.8bn ($2.7bn) and AED6.8bn ($1.9bn) compared to 2021, as a result of sustained revenue, improved margins, and continued control over costs.
Emaar’s group property sales in 2022 reached AED35.1bn ($9.5bn), primarily driven by new project launches.
Emaar’s backlog of property sales has reached AED53.2bn ($14.5bn), which will be recognised as revenue in the coming years.
In 2022, Emaar completed the acquisition of Dubai Creek Harbour for an overall consideration of AED7.5bn ($2bn).
Mohamed Alabbar, Founder of Emaar, said: “After a successful 2022, we are very pleased with our accomplishments. Improvements in consumer confidence and overall business activity, especially in the real estate market, have benefited all the company’s operations over the past year, thanks to the strategic measures taken over the past two years.
“Given these remarkable outcomes, we expect to see strong performance by our shopping centres, hotels, and property sales in 2023, as we continue to deliver cutting-edge projects and unparalleled offerings across all of our business units.”
Other parts of the Group also reported strong performances for 2022.
Emaar Development
Emaar Development, the UAE build-to-sell property development business , maintained strong property sales momentum in Dubai in 2022, recording AED30.7bn ($8.4bn) in property sales, a 12 per cent increase over 2021.
Emaar Development reported AED11.5bn ($3.1bn) in revenue and AED 4.2bn ($1.2bn) in earnings.
Emaar International
In 2022, international real estate operations recorded AED4.3bn ($1.2bn) in property sales and AED4.2bn ($1.1bn) in revenue, representing 17 per cent of Emaar’s total revenue.
The performance of international operations was led by successful operations in Egypt and India.
Emaar Malls Management
Emaar Malls Management, the wholly owned shopping malls and retail division, saw an 8 per cent increase in revenue in 2022 compared to the previous year, reaching AED5.4bn ($1.5bn).
The mall management business achieved earnings of AED3.1bn ($836m) in 2022, an increase of 21 per cent from 2021, with tenant sales surpassing pre-Covid 19 levels.
The occupancy rate of Dubai Mall stood at 97 per cent.
The Dubai Hills Mall, which was unveiled on 17 February 2022 has quickly established itself in the market. As of the end of 2022, 91 per cent of the Dubai Hills Mall was leased.
Hospitality, Leisure, and Entertainment
Hospitality, leisure, entertainment, and commercial leasing businesses generated AED3.4bn ($929m) in revenue in 2022, an increase of 57 per cent compared to 2021.
In 2022, the group’s hotels in the UAE achieved strong performance led by significant growth in ADRs and achieving average occupancy rates of 69 per cent, driven by a rebound in global tourism and supported by global events like Expo 2020 and FIFA World Cup.
Recurring revenue-generating businesses of malls, hospitality, leisure, entertainment, and commercial leasing collectively generated AED8.8bn ($2.4bn) in revenue in 2022, a 23 per cent increase over the previous year.
These businesses represent 36 per cent of the firm’s total revenue.
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