Deyaar returns to profit amid continued property market recovery

The developer, majority owned by Dubai Islamic Bank, said its revenue jumped 22 per cent last year on the back of new project launches

Deyaar said its hospitality portfolio benefited from a rebound in Dubai's tourism sector. Pawan Singh / The National.

Dubai’s Deyaar Development swung to full-year profit last year as revenue jumped on new project launches amid continuing recovery in the UAE’s property market.

Net profit for the 12-month period to the end of December climbed to Dh51 million ($14m), compared with a net loss of about Dh217m in 2020, the company said in a statement to the Dubai Financial Market, where its shares are traded.

Revenue for the reporting period rose 22 per cent year-on-year to Dh505m. The company’s operating profit more than doubled to Dh63m at the end of 2021, up from about Dh25m in 2020.

“The year 2021 witnessed remarkable growth across various economic sectors in the country … and our results for the year were in line with this growth,” Saeed Al Qatami, chief executive of Deyaar, said.

The property market in the UAE, the second-biggest Arab economy, has made a strong recovery from the pandemic-induced slowdown amid business and social reforms and government stimulus measures to support economy.

The value of property deals in Dubai more than doubled last year and broke a 12-year record in terms of real estate sales transactions, buoyed by demand in the secondary real estate market as the UAE economy continued to rebound.

Pent-up demand and improved investor sentiment have also helped to drive property sales. New initiatives, such as visas for retirees and the expansion of the 10-year golden visa programme, are expected to further support the property market, industry experts say.

Deyaar, which is expanding its portfolio of hospitality and recurring income generating properties, has also benefited from a strong recovery in the emirate’s tourism sector.

“The company's hospitality portfolio also witnessed an outstanding growth in occupancy rates, driven by the lifting of travel restrictions and the full return of tourism activities in the country,” Mr Al Qatami said.

Data published by Dubai’s Department of Economy and Tourism showed the emirate attracted 7.28 million international visitors last year, a 32 per cent year-on-year growth. In the fourth quarter alone it received 3.4 million visitors, around 74 per cent of pre-pandemic levels.

Deyaar, majority owned by the UAE’s biggest Sharia-compliant lender Dubai Islamic Bank, continued to launch new projects in 2021.

The company sold all units in its Regalia project, a luxury residential tower in Business Bay last year, which helped in boosting its revenue.

Deyaar plans to launch several projects this year in Jumeirah Village Circle, Al Furjan and at its Midtown master development in Dubai Production City, vice president of sales, Nasser Amer, told The National in November.

Deyaar will finance the new projects through a mix of debt and equity, as well as proceeds from sales, Mr Amer said at the time.