Dubai developer Deyaar reports leap in third-quarter profit

Dubia — Dubai property developer Deyaar on Thursday reported a surge in third quarter profit while revenues rose 72% over the same period on the back of a revival in the emirate’s real estate sector.

The company made a profit of 36.3-million dirhams ($9.88m) in the third quarter from 8.1-million dirhams in the same period last year. Revenue totalled 207.7-million dirhams, up from 120.7-million a year earlier.

Deyaar CEO Saeed Al Qatami attributed the company’s strong performance to positive trends in the United Arab Emirates’ (UAE) real estate sector. He expected growth to continue as the UAE’s property market recovers from the pandemic on the back of government initiatives. These include residency permits for retirees and remote workers, as well as the expansion of the 10-year Golden Visa programme, reports said.

Following a pandemic-led slowdown, Deyaar said it had now accelerated construction at two new developments in Dubai, which were expected to be ready for handover late this year or in early 2023.

The company’s board on Tuesday recommended shareholders approve a 500-million dirhams cash settlement with another Dubai-based developer, Limitless, which will include a 200-million dirhams payment upon agreement, and the remaining 300-million within 18 months. Shareholders will be asked to decide on the agreement terms at a November 21 general assembly meeting.

Dubai government-owned Limitless, along with Nakheel, was among the biggest casualties of Dubai’s property crash and the subsequent debt crisis that began in 2009. Reuters reported last year that Limitless was set to reach an agreement with creditors over about $760m of troubled debt.

Dubai’s real estate sector has been resilient amid the rising cost of living and a weaker global economic outlook, with total transactions in September up 33.4% from a year earlier, according to a recent report by CBRE.

So far this year, Russia and the UK have been the biggest origin of investment countries in Dubai's property market, consultancy Betterhomes said.

Reuters