Dubai property firm Deyaar posts 125% surge in Q1 profit
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Dubai property firm Deyaar posts 125% surge in Q1 profit

Dubai property firm Deyaar posts 125% surge in Q1 profit

The property developer’s net profit reached Dhs56.4m in the first three months of 2023 from Dhs25m in the same period last year

Gulf Business
Deyaar Development

Dubai-based Deyaar Development (Deyaar) has reported a 125 per cent increase in first-quarter net profit while its revenues jumped 72 per cent compared to the same period a year, signalling the company’s continued growth and financial stability.

The property developer’s profit reached $33m (Dhs56.4m) in the first three months of 2023 from Dhs25m in the same period last year. Quarterly, the company’s net profit was 37 per cent higher than Dhs41m for the fourth quarter of 2022.

Deyaar’s revenues reached Dhs313m in the first quarter of 2023 from Dhs162m in the same period a year earlier. The company said its revenues have grown significantly over the past few months, driven by progress at Regalia in Business Bay and the exceptional performance of its developments such as Noor and Mesk in Dubai Production City.

The developer commenced the handover of the Mesk District in February, ahead of its scheduled handover timeline while the handover of the Noor District is scheduled for June.

The Dubai property firm expects to further grow its revenue in the next few years and to achieve this, Deyaar intends to focus on monetising and developing new projects on remaining plots, assess potential joint ventures and replenish the land bank with new diversified land.

“Our Q1 results are a testament to Deyaar’s progress, our sound business strategies and prudent financial practices. It shows the company is well-positioned to achieve continued growth and success well into the future,” said Saeed Al Qatami, CEO of Deyaar. “Deyaar has significantly increased the frequency of its project launches and today the company has reached a pivotal turning point in its journey and looks towards a brighter future for the benefit of all its customers and investors.”

The property firm’s record profit follows a successful financial year and includes achieving unprecedented success in delivering new projects such as Regalia at Business Bay, Tria in Dubai Silicon Oasis and Mar Casa at Dubai Maritime City.

Deyaar unveiled its signature seafront project Mar Casa at a total value of Dhs1.1bn in March, redefining the region’s urban life and reinventing the boundaries of conventional luxury. The luxurious units at Mar Casa offer prospective buyers a wide range of options, with one-bedroom units ranging from 740-1265 square feet and starting at a price of Dhs1.28m.

Deyaar’s growth prospects

Meanwhile, Deyaar said the increase in its profit and growth in its operations has brought major changes to the business, with an increased focus on prioritising digital transformation initiatives to improve and modernise its operations.

The company is also leveraging innovative technologies to enhance efficiency, automate processes and deliver the best service to customers. Deyaar has delivered projects worth Dhs2bn over the last six months and this will be reflected in its revenues later this year.

Al Qatami said Deyaar has a backlog valued at Dhs3.2bn and the company has been discussing with its board on its ambitious plan for projects worth Dhs3.5bn. Founded in 2002, the Deyaar has registered exponential growth to become an industry leader in the region, with a share capital of Dhs4.38bn.

Demand for property in Dubai hit a record high in the first three months of 2023 and Deyaar is well-positioned to play a pivotal role in the development of the city’s property landscape.

CBRE said average residential prices in Dubai have increased by 12.8 per cent in the year through March 2023, with average apartment prices increasing by 12.4 per cent and average villa prices by 14.8 per cent.

Read: Morgan Stanley sees cash buyers and Chinese buoying Dubai property

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