Emaar Properties recorded lower net profit in the first half of 2021 despite higher revenue

The company's revenue increased by 229 percent, the sales value totalled USD 4.4 billion.

Dubai’s largest developer Emaar Properties reported an 8 percent drop in its net profit for the first half of this year despite an increase in revenue during the period as expenses rose.

Emaar said in its statement to the Dubai Financial Market, where its shares are traded, that the company's net profit for the six-months to the end of June had fallen to USD 424 million. Revenue increased by 52 percent and reached USD 3.4 billion. Operating, selling, general and administrative expenses rose too.

The value of Emaar's property sales in the first half totalled USD 4.4 billion, which is 229 percent more than in the same period last year.

'The remarkable performance was a result of Emaar’s concerted focus on sales of under-construction projects and the successful launch of properties both in UAE and international markets,' Emaar commented.

The developer's net profit in the second quarter dropped by 17 percent to USD 245 million, while revenue grew by 125 percent to USD 1.7 billion.

'Our performance in the second quarter demonstrates our continued resilience and ability to anticipate and ‘future-proof’ the business,' an Emaar spokesperson said.

Since 2002 Emaar has handed over more than 77,000 residential units in Dubai and in other countries worldwide, over 25,700 units are currently under development in UAE and 11,000 units in global markets.

Profit at its arm Emaar Development went up by 46 percent to USD 411 million and revenue surged by 61 percent to 2.1 billion.

Dubai's property market has witnessed an increase in deal activity over the past few months due to pent-up demand in the market. And according to a recent report from Knight Frank, the emirate's house prices rose at their fastest pace in seven years in the second quarter of 2021.