Emaar rides strong sales to 27% profit boost in Q1

Emaar Properties reported its Q1 2025 results,which it said was driven by record-breaking property sales, robust revenue growth, and expanding international demand.

The company posted Dhs 5.4bn ($1.5bn) in net profit before tax, a 27 per cent increase over Q1 2024, as it continues to scale operations and redefine industry benchmarks.

Emaar achieved property sales of Dhs19.3bn ($5.3bn) in Q1, up 42 per cent year-on-year.

Revenue rose 50 per cent to Dhs 10.1bn ($2.8bn), while EBITDA grew 24 per cent to Dhs 5.4bn, with a margin exceeding 53 per cent.

The developer also declared and paid a record dividend of Dhs8.9bn ($2.4bn).

Revenue backlog from property sales stood at Dhs127bn ($34.6bn) as of March 31, up 62 per cent compared to the same period last year, pointing to a strong revenue pipeline.

“These results are more than numbers; they reflect the ambition of a team that refuses to stand still,” said Mohamed Alabbar, founder of Emaar. “At Emaar, we don’t follow momentum — we create it.”

Domestic property development remains core driver

Emaar Development, the company’s UAE-based build-to-sell arm, saw record quarterly sales of Dhs 16.5bn ($4.5bn), marking a 28 per cent year-on-year increase.

Revenue grew 43 per cent to Dhs 5bn ($1.4bn), with net profit before tax rising 49 per cent to Dhs 2.8bn ($753m). Consolidated UAE development revenue reached Dhs 6.9bn ($1.9bn), including Dubai Creek Harbour.

Backlog for UAE property sales stood at Dhs112bn ($30.5bn) by the end of the quarter, underscoring sustained demand for premium residential projects across the emirate.

Emaar retail, hospitality and international segments strengthen

Emaar’s shopping malls and commercial leasing business recorded Dhs 1.5bn ($408m) in revenue and Dhs1.3bn ($354m) in EBITDA in Q1, supported by strong lease renewals, growing tenant sales, and 98 per cent average occupancy.

International property sales contributed Dhs2.8bn ($762m), led by strong performance in India and Egypt. International revenues totalled Dhs626m ($170m), representing around 6 per cent of the group’s total revenue.

The hospitality, leisure, and entertainment division generated Dhs1.1bn ($299m) in Q1 revenue, supported by robust tourism and 82 per cent average hotel occupancy.

Emaar added two new hotels with over 600 keys during the quarter.

Recurring revenue grows 11 per cent

Recurring revenue from malls, hospitality, leisure, entertainment, and leasing reached Dhs2.6bn ($707m), up 11 per cent from Q1 2024.

EBITDA from this segment rose by 10 per cent to Dhs 2bn ($545m), making up 37 per cent of Emaar’s total EBITDA.

Strong ESG and credit momentum

Emaar received its third ESG rating upgrade in four years from MSCI and saw its credit rating upgraded by S&P Global to BBB+ with a stable outlook, reflecting investor confidence in its sustainability focus and financial stability.

The company emphasised ongoing investments in talent development, operational efficiency, and responsible sourcing, further supporting its long-term growth strategy.