Dubai developer Deyaar's 2023 profit jumps over threefold on higher revenue

Net profit for the 12 months to the end of December increased to $120m

Deyaar's assets grew about 6.4 per cent to reach Dh6.54 billion by the end of December 2023. Razan Alzayani / The National

Dubai property developer Deyaar reported a more than threefold yearly jump in its 2023 net profit, fuelled by new projects and increased revenue on the back of the UAE’s vibrant property market.

Net profit for the 12 months to the end of December increased to Dh440.7 million ($120 million), the company said in a filing of its preliminary unaudited financial results to the Dubai Financial Market, where its shares are traded.

Its net operating profit rose 95 per cent annually to Dh281.3 million, while total assets grew 6.5 per cent year-on-year to more than Dh6.5 billion.

Revenue for the period climbed 56 per cent annually to about Dh1.3 billion, driven by the thriving property market in the UAE.

The company attributed the increase in revenue to a jump in “property development revenue of Dh412 million from the sale of properties”.

The developer also reported a 15 per cent annual increase in revenue from other businesses last year.

“We increased our project frequency and accelerated various stages of construction to maintain our track record of delivering projects on time or even ahead of schedule,” Saeed Al Qatami, chief executive of Deyaar Development, said.

The company’s luxury project Mar Casa, a seafront residential destination at Dubai Maritime City valued at Dh1.1 billion, was sold out in record time after its launch in March last year, the company said.

It also handed over the Mesk and Noor Residential communities at Midtown ahead of their scheduled timetable. Additionally, it introduced the final residential community, Jannat, at its flagship project Midtown.

“The year 2024 looks even more promising, as we have already started the year with the launch of Rosalia Residences, our third project at Al Furjan. As we move forward, we will … capitalise on strategic growth opportunities within the dynamic real estate sector of the UAE,” Mr Qatami said.

The Dubai real estate market continued to break records in 2023, with 120,742 residential sales transactions, up 38 per cent on the previous record of 87,454 set in 2022, Better Homes said.

This growth came predominantly from apartment sales, which increased by 49 per cent to 94,155, the agency said.

Majority-owned by Dubai Islamic Bank, Deyaar is one of the emirate’s leading developers. Since its establishment in 2002, the company has delivered an extensive portfolio of commercial and residential properties.