Dubai developer Emaar Properties plans to increase its stake in its UAE build-to-sell property business amid a rebound in the emirate's real estate market.
Emaar's board approved raising its stake in Emaar Development during a meeting on Thursday, the company said on Friday in a statement to the Dubai Financial Market, where its shares are traded.
It clarified in a later statement that "the increase of shareholding would be by up to 3 per cent only of the share capital of Emaar Development".
Emaar Properties held an 80 per cent stake in Emaar Development and its subsidiaries as of December 31, 2021.
Emaar Properties raised Dh4.82 billion ($1.31 billion) from the sale of a 20 per cent stake in its development business in November 2017, which at the time was the largest Dubai listing in three years.
The developer has registered strong growth in the past year, buoyed by the rebounding Dubai property market.
Net profit for 2021 grew 80 per cent to Dh3.8bn after the company posted the best annual sales since its inception.
The company’s revenue soared 57.4 per cent annually to Dh28.3bn during the period.
Emaar’s portfolio of prime assets will “continue to benefit from the fundamental shifts occurring within the real estate market, as well as the company’s approach to portfolio optimisation”, founder Mohamed Alabbar said last month.
Emaar Development also achieved record property sales in 2021, registering a four-fold increase to Dh27.4bn.
Profit for the year more than doubled to Dh4.2bn while revenue rose 60 per cent to Dh15.6bn.
The company, which has a sales backlog of Dh28.6bn, is expected to deliver more than 8,000 residential units in 2022.
Dubai registered 61,241 sales transactions last year, with annual deal value up 110 per cent to Dh151.07bn, making 2021 the best year for total transactions since 2013 and the highest in value since 2009, according to Property Finder.
The sector is expected to continue growing this year on the back of new government initiatives such as residency permits for retirees and remote workers, in addition to the expansion of the 10-year golden visa programme.
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Where Dubai apartment prices are rising and falling
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APARTMENT PRICES: Downtown Dubai rose by 0.2 per cent month-on-month in March to Dh1,963 per square foot. Reuters -
Jumeirah: Dh1,908 per square foot — up 2.7 per cent a month. The National -
The Palm Jumeirah: Dh1,789 per square foot — down 2.7 per cent a month. Antonie Robertson / The National -
DIFC: Dh1,589 per square foot — up 0.1 per cent a month. Jeff Topping / The National -
Jumeirah Beach Residence: Dh1,508 per square foot — up 0.6 per cent a month. Photo: LuxuryProperty.com -
Mohammed bin Rashid City: Dh1,435 per square foot — down 1 per cent a month. Satish Kumar / The National -
Business Bay: Dh1,421 per square foot — up 0.4 per cent a month. Sarah Dea / The National -
Dubai Hills: Dh1,415 per square foot — up 0.2 per cent a month. Photo: Emaar Malls Management -
Dubai Marina: Dh1,391 per square foot — up 0.3 per cent a month. Victor Besa / The National -
The Greens and The Views: Dh1,084 per square foot — up 1.7 per cent month. Sarah Dea / The National -
Jumeirah Lakes Towers: Dh997 per square foot — no change. Antonie Robertson / The National -
Damac Hills: Dh966 per square foot — up 1.1 per cent a month. Pawan Singh / The National -
Jumeirah Village Circle: Dh885 per square foot — up 1.6 per cent a month. Razan Alzayani / The National -
Town Square: Dh865 per square foot — down 1.8 per cent a month. -
Motor City: Dh651 per square foot — up 1.3 per cent a month. -
Dubai Silicon Oasis: Dh618 per square foot — up 1.4 per cent a month. Chris Whiteoak / The National -
Dubai Sports City: Dh592 per square foot — down 1.4 per cent a month. Reem Mohammed / The National -
Discovery Gardens: Dh543 per square foot — up 2.5 per cent a month. Pawan Singh / The National -
International City: Dh442 per square foot — up 0.5 per cent a month. Antonie Robertson / The National
