Emaar Properties’ net profit during the third quarter of 2015 rose 31 per cent to reach Dhs 843m ($230m), the Dubai-based developer said.
The government-owned builder’s revenues rose 56 per cent during Q3 to reach Dhs 3.3bn, compared to Dhs 2.1bn in the corresponding period last year.
Meanwhile Emaar reported a 16 per cent growth in its net profit for the first nine months of this year, which reached Dhs 3.04bn. The company earned revenues worth Dhs 9.8bn during this period, up 25 per cent from the same period last year.
The developer’s recurring revenues-mainly from its hospitality and leisure businesses- rose 10 per cent during the first nine months to reach Dhs 4.1bn. This amount represented around 43 per cent of the company’s revenues during this period, the statement added.
Emaar’s hospitality and leisure business earned revenues worth Dhs 1.199bn during the first nine months of the year, rising marginally from Dhs 1.196bn last year. Hospitality revenues now account for 12 per cent of the total revenue.
Emaar Malls, the listed retail arm of the firm, reported a 30 per cent growth in net profit recording Dhs 1.2bn during the first nine months of 2015.
The Dubai developer’s revenues from international operations also grew to around Dhs 1.7bn during the first nine months of this year, up 18 per cent from the same period last year.
Dubai’s property prices have dropped by an average of 2 per cent quarter-on-quarter this year and 6 per cent year-on-year in Q3 2015. Emaar’s earnings reflected the trend as the company’s sales, especially in its home market of Dubai, saw a drastic slump.
Sales in Dubai dropped to Dhs 7.5bn in the first nine months of this year, down 28.5 per cent from Dhs 10.5bn in the same period last year. Meanwhile sales in international markets during the same period were valued at Dhs 3.9bn.
But a slowdown in the market has not stopped the company from launching new projects.
Emaar’s recent launches include Dubai Creek Harbour in partnership with Dubai Holding, Creekside 18 residences and various other smaller communities in Dubai Hills Estate, a joint venture with Meraas.