Deyaar, a prominent Dubai real estate developer, has witnessed a substantial increase in profit during the first quarter, primarily fueled by a series of successful property launches within the flourishing real estate market of the emirate.
With a surge of 125 percent, net profit for the three-month period ending in March soared to Dh56.4 million ($15.3 million), compared to Dh25 million recorded in the same period last year. Deyaar disclosed this significant growth in a filing to the Dubai Financial Market, where its shares are traded.
In addition to the remarkable profit, the company’s revenue experienced an annual rise of 93 percent, reaching Dh312 million during the same period.
Saeed Al Qatami, the CEO of Deyaar, attributed this outstanding performance to the successful sale of recent project launches, including Regalia at Business Bay, Tria in Dubai Silicon Oasis, and Mar Casa at Dubai Maritime City. He emphasized the company’s enhanced project launch frequency and highlighted this achievement as a pivotal turning point in Deyaar’s journey toward a brighter future.
The company further reported substantial revenue growth in recent months, driven by the construction progress at Regalia and the exceptional performance of developments like Noor and Mesk in Dubai Production City.
The first quarter of this year witnessed a surge in property sales across Dubai, outperforming the same period in the previous year. The market’s robust recovery from the pandemic can be attributed to government initiatives, increased oil prices, and other measures implemented to support the economy.
Official data reveals an 80 percent year-on-year increase in Dubai’s total transaction value, reaching Dh157 billion in the first quarter. Additionally, the number of transactions rose by 49 percent to 38,715 during this period.
Having successfully completed a capital restructuring program in June of the previous year, which involved the write-off of accumulated losses worth Dh1.7 billion, Deyaar, majority-owned by Dubai Islamic Bank, experienced a positive financial turnaround. Furthermore, the company received a payment of Dh200 million following the final settlement agreement of its land dispute with master developer Limitless in December.
Deyaar has outlined its strategic plan to further boost revenue in the coming years. The company aims to focus on monetizing and developing new projects on remaining plots, evaluate potential joint ventures, and diversify its land bank with new acquisitions. Their phased development strategy will prioritize availability, profitability, and diversification.
To stay ahead in the evolving real estate landscape, Deyaar intends to undertake digital transformation initiatives, optimizing and modernizing its business operations, enhancing efficiency, and automating processes.
By capitalizing on the current property boom in Dubai, Deyaar is poised for continued success, offering innovative real estate solutions and contributing to the city’s thriving market.
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