Dubai real estate developers continue to reap the benefits of the real estate boom, with development companies in the Emirati city continuing to achieve leaps in profits and record sales.
Key Numbers:
- 7.6 billion dirhams – The record profit of Emaar Development in 2024, which is double its profit from 2022.
- 62% – The year-on-year increase in Aldar Properties’ revenues, reaching 23 billion dirhams.
- 70% – The rise in the share prices of both Emaar Properties and Aldar Properties over the past year.
Dubai ranked third globally in terms of luxury real estate performance in 2024, with prices increasing by 16.9%, according to the Knight Frank Cities Index. This demand was driven by expatriates who settled in the city, along with foreign buyers eager to take advantage of the real estate boom.
“Emaar Development,” the construction arm of the group that built the world’s tallest tower in Dubai, recorded a record profit of 7.6 billion dirhams ($2 billion) in 2024, double its profits in 2022. “Bin Gatti Holding” also managed to double its profits compared to the previous year.
In neighboring Abu Dhabi, Aldar Properties’ annual profits exceeded analysts’ expectations, with its revenues jumping by 62% year-on-year to reach 23 billion dirhams.
Dubai Population Growth
Property prices are expected to continue rising over the next year. Mohammed Ali Yaseen, founder and CEO of Oracle Consulting and Financial Investments, stated that “population growth is the main driver of this real estate boom, and it is likely to continue until 2025, albeit at a slower pace.”
Dubai real estate market experienced sharp declines in previous years, but the current boom has lasted a long time, driven by government policies in response to the pandemic and the introduction of flexible visa schemes. At the same time, the luxury sector in the emirate’s real estate market, including waterfront villas on the artificial islands shaped like palms, has benefited from an influx of wealthy investors, including Russians seeking to protect their assets, cryptocurrency millionaires, and bankers who left their jobs in Asia.
Read more: Report: UAE Real Estate Market Grows by 20% in January 2025
Although the gains have not been evenly distributed, smaller companies that had to restructure during previous downturns have started to make profits. Among these companies is Deyaar Development, whose profits rose by 7.5% to reach 473.9 million dirhams in 2024.
Real Estate Stocks Attract Investors
Despite some weaknesses, real estate stocks remain an attractive option for investors.
Twelve analysts tracking the parent company Emaar Properties have recommended buying the stock, which surged more than 70% over the past year. Aldar Properties’ shares also rose by more than 70% during the same period, while Deyaar’s stock increased by about 27%.
Dubai real estate developers are investing their massive profits into launching new projects to attract more buyers.
Yaseen concluded: “Dubai real estate developers are launching new projects amid expectations that there will be a need for housing to accommodate newcomers from around the world.”
Source: Bloomberg
