Dubai real estate developers achieve record profits with support of international buyers

Dubai developers still love the fruits of the property boom, as the developmental companies in the UAE city still produce profits and standard sales. Dubai was third in the world in terms of the performance of luxury real estate in 2024 after prices rose 16.9%, according to the “Knight Frank” index for cities. This request was driven by expatriates who settled in the city, along with foreign buyers who rushed to take advantage of the boom in the property. Emaar Development, the construction arm of the group that built the highest tower in the world in Dubai, scored record profits of 7.6 billion dirhams (two billion dollars) in 2024, twice his profits in 2022. Bin Ghati Holding also managed to double its profits compared to the previous year. In neighboring Abu Dhabi, the annual profits of the “Aldar Real Estate” business exceeded analysts’ expectations after its revenue rose 62% annually to reach 23 billion dirhams. Dubai’s population growth is expected to continue to rise during the next year. “The growth of the population is the most important driver of this real estate mutation, and it is likely to continue until 2025, although it is slower,” said Mohamed Ali Yassin, founder and CEO of Oracle Consulting and Financial Investments. The Dubai real estate market has seen sharp declines in previous years, but the current boom goes long, powered by government policies in dealing with the pandemic and providing flexible visas. At the same time, the luxury sector in the emirate real estate market, including villas overlooking the waterfront in the artificial islands designed in the form of a palm tree, benefited from the flow of rich investors, including the Russians who want to protect their assets, two million cryptocurrencies, and bankers who have left their work in Asia. Read more: Dubai Real Estate Boom stimulates the introduction of billions of dollars to luxury projects, although the profits are not evenly distributed, smaller businesses forced to restructure during the previous decline periods, to achieve profits. Among the businesses, “Diyar for Development”, the profits of which rose 7.5% to 473.9 million dirhams in 2024. Property shares attract investors despite some weaknesses, and real estate shares remain an attractive option for investors. He recommended 12 analysts following the parent company “Emar Real Estate” to buy the arrow, which has jumped by more than 70% over the past year. The shares of “Aldar Real Estate” increased by more than 70% in the same period, while “DIYAR” increased by 27%. Property development companies invest their big profits in implementing new projects to attract more buyers. Yassin concluded: “The developers begin new projects, amid the expectation that there is a need for housing to accommodate new arrivals from around the world.”