Emaar Development PJSC, Dubai‘s prominent build-to-sell property developer, has announced a significant 39% year-on-year surge in its net profit for the first quarter of 2025. The company recorded a net profit of AED 2.36 billion ($642.6 million), a substantial increase from the same period last year. This growth was underpinned by a robust 43% rise in revenue, reaching AED 5 billion, and a 28% jump in the value of property sales to AED 16.5 billion. Furthermore, the company’s revenue backlog saw an impressive 52% increase, hitting AED 100 billion.
The first quarter of 2025 witnessed Emaar Development successfully launching 12 projects across its various masterplans, a factor that significantly contributed to the strong sales figures. The company’s ability to drive off-plan sales and ensure timely handovers of residential units in key Dubai locations like Dubai Hills Estate and Dubai Creek Harbour has been a key driver of this performance. The substantial increase in the revenue backlog also signals promising revenue recognition in the upcoming quarters.
Despite the impressive year-on-year growth, Emaar Development’s Q1 net profit fell slightly short of analysts’ average estimate, which stood at AED 2.45 billion, according to data from LSEG. This “miss,” although marginal, has led to some mixed reactions in the market, suggesting that while the performance was strong, expectations were even higher, possibly influenced by the company’s performance in the final quarter of 2024.
Several factors are likely to have played a role in the financial outcome. While strong sales and handovers boosted revenue, the company may have faced headwinds such as rising global construction costs for materials and labor, which could have impacted project expenses. Slight delays in some project handovers and potential currency fluctuations could have also contributed to the variance from analyst estimates.
Despite missing the consensus forecast, Emaar Development’s leadership remains optimistic about the company’s trajectory. A company spokesperson highlighted their commitment to “building not just properties, but experiences that last,” emphasizing a strategy focused on sustainable growth and community-centric development. The strong sales figures and growing backlog provide a solid foundation for future performance.
Emaar Development is poised to capitalize on the continued strong demand in Dubai’s real estate sector. The company has plans for new project launches in prime locations, including waterfront and luxury villa communities. There is also an increasing focus on smart living initiatives and sustainable design, aligning with the evolving preferences of buyers in the region.
Key Highlights:
- Emaar Development’s Q1 2025 net profit increased by 39% year-on-year to AED 2.36 billion, but missed analysts’ estimates.
- Revenue grew by 43% to AED 5 billion, and property sales rose by 28% to AED 16.5 billion.
- The company’s revenue backlog increased significantly by 52% to AED 100 billion.
- Despite strong growth, the net profit fell slightly below market expectations.