Aldar reports surging UAE sales to expats and overseas buyers boosting its Q2 revenue

Developer recorded sales in the country of $1.85bn during the three-month period amid property market boom

Aldar headquarters in Abu Dhabi. The company recorded total UAE sales of Dh6.8 billion in the second quarter. Victor Besa / The National

Aldar Properties, Abu Dhabi’s biggest listed developer, has reported a surge in property sales in the UAE to residents and overseas buyers, boosting its second-quarter revenue amid the country's continued growth in the real estate market.

UAE sales to overseas and resident buyers for the three months to the end of June stood at Dh5.6 billion ($1.52 billion), accounting for 82 per cent of total sales in the country, Aldar said on Monday in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.

The company recorded total UAE sales of Dh6.8 billion ($1.85 billion) in the second quarter, up 7 per cent annually, on strong demand for new and existing developments in Abu Dhabi, Dubai and Ras Al Khaimah.

Indians, Russians, British nationals, Chinese as well as Jordanians and North Americans were among its main customers, Faisal Falaknaz, Aldar's chief finance and sustainability officer said.

"Nationalities vary across different locations and different product types. So, for example, when we launched Athlon and Haven [in Dubai], we had a higher concentration of Indians than what we would typically have in Abu Dhabi," Mr Falaknaz said.

Aldar is developing the Athlon and Haven residential projects in partnership with Dubai Holding. The companies generated Dh4.1 billion from the sale of more than 1,000 villas and townhouses at Athlon in May and Dh1 billion from the sale of more than 660 apartment units at Haven this month.

The company is also planning to launch new projects in Dubai and Abu Dhabi amid higher demand from buyers, Mr Falaknaz said.

These include a luxury beachfront development at Al Fahid Island in Abu Dhabi and a new master development in Dubai.

"The most meaningful launch that we have coming in Dubai is going to be our third master plan launch, which is going to be the plot on the other side of Mohamed bin Zayed Road ... that's something that we will be looking to launch towards the end of this year or the beginning of next year," Mr Falaknaz said.

Last week, Aldar also unveiled a new development named The Arthouse consisting of 281 premium apartments and sky villas at Saadiyat Cultural District in Abu Dhabi. The construction of the project, with one, two and three-bedroom apartments, is expected to begin in the first quarter of 2025, it said.

It also plans to develop a Grade A office tower beside Dubai International Financial Centre on Sheikh Zayed Road, with a net leasable area of 88,000 square metres, which also includes a luxury boutique hotel and branded residences.

The new announcements come as Aldar's second-quarter revenue and rental income surged 64 per cent on an annual basis to Dh5.3 billion. Meanwhile, UAE revenue backlog stood at Dh33.2 billion as of the end of June, with an average duration of 28 months, up from Dh29.1 billion at the end of 2023.

Profit attributable to equity holders of the company for the second quarter rose by 30 per cent to Dh1.5 billion.

“The UAE real estate market continues to display solid fundamentals driven by strong end-user demand and increasing global investor interest,” said Mohamed Al Mubarak, chairman of Aldar Properties.

“Underpinning this strength is the dynamism of the UAE economy. Through pro-growth policies and a business-friendly environment, the UAE has emerged as a premier destination for international corporates, entrepreneurs and capital.”

The UAE property market has been booming in recent years on the back of government initiatives such as residence permits for retired and remote workers, and the expansion of the 10-year golden visa programme.

Overall growth in the UAE’s economy due to diversification efforts is also supporting the property market.

In the second quarter, Dubai’s villa market remained robust, with capital values increasing by 33.4 per cent annually and 7.3 per cent on a quarterly basis, according to a report by ValuStrat.

Valuations of apartments also continued to rise and were up by 23.4 per cent year-on-year and 5.4 per cent compared with the first quarter, the report said.

Meanwhile, Abu Dhabi's real estate sector recorded transactions totalling Dh19.4 billion in the first quarter, spanning across 6,070 deals, Wam reported in June, citing data from Abu Dhabi Real Estate Centre.

The emirate's property market attracted a record Dh1.81 billion in foreign direct investment during the three-month period with investors from source markets such as India, Russia, Canada, the UK, Jordan and China significantly increasing their investments annually, it said.