Property sales at Emaar Development, the company behind the world's tallest tower Burj Khalifa and Downtown Dubai district, could hit Dh21.5 billion ($5.85bn), as activity picks up in the UAE’s real estate market amid a broader economic recovery, a note from EFG Hermes said.
The development arm of Dubai's biggest listed developer Emaar Properties is poised to record the highest amount of sales in 10 years, the report added.
“ED’s business model has proven resilient amidst the challenges posed since the 2009 real estate crash in the emirate,” the report said.
The company “managed to adapt to all such challenges with its strong balance sheet, backing of its parent company [Emaar Properties], market positioning and unique product mix,” it said.
The UAE's property market, which softened after a three-year oil price slump that began in 2014 and subsequent oversupply concerns, is showing signs of a revival as end users look to upgrade to larger spaces amid a rise in remote working and learning due to the pandemic.
Economic support measures and government initiatives, including visas for expatriate retirees, remote workers and the expansion of the 10-year golden visa scheme, have also helped to improve sentiment.
The company’s total sales in the next five years are estimated to reach Dh95bn and over the coming 23 years, will touch Dh425bn, the report said. Property sales in 2022 and 2023 are estimated to reach Dh21.5bn and Dh17.7bn, respectively.
“Although sales in Dubai Creek will contribute the most to the total development portfolio, given the size of the projects, we highlight that sales over the coming five years are more evenly scattered between projects in the company’s portfolio,” EFG Hermes said.
Emaar is developing a number of new projects along Dubai Creek to boost its residential portfolio including Creek Edge and Creek Palace and The Cove.
“The general pick-up in the global real estate market and increase in cross-border investments in the local property market are encouraging factors that support demand in the short term, despite concerns over an oversupplied market,” EFG Hermes said.
Emaar Development is expected to post a net revenue of Dh14.1bn in 2021 while its net income will reach Dh2.7bn, the report said.
Emaar Properties recorded sales worth Dh16.48bn in the first half of this year, up 229 per cent compared with the same period in 2020, the company said on August 11.
Residential transactions in Dubai hit an eight-year high in the first half of 2021 amid renewed demand and improving economic activity.
Total transactions in the six months to the end of June surged 69.2 per cent, compared with the same period in 2020, according to CBRE Research. Compared with the same period in 2019, 2021 total transactions jumped 46.4 per cent, CBRE Research said.
Average home prices during the period jumped an annual 2.8 per cent, largely driven by villa prices.
Dubai also recorded the highest level of rental growth in the first six months of the year, alongside other cities such as Moscow and Miami, consultancy Savills said in report last month.
Prime rental prices in the emirate climbed 5 per cent between January and June, driven by a 20 per cent increase in rents across certain villa communities, it said.
Museum of the Future in numbers
- 78 metres is the height of the museum
- 30,000 square metres is its total area
- 17,000 square metres is the length of the stainless steel facade
- 14 kilometres is the length of LED lights used on the facade
- 1,024 individual pieces make up the exterior
- 7 floors in all, with one for administrative offices
- 2,400 diagonally intersecting steel members frame the torus shape
- 100 species of trees and plants dot the gardens
- Dh145 is the price of a ticket
How has net migration to UK changed?
The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.
It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.
The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.
The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.
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How to keep control of your emotions
If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.
Greed
Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.
Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.
Fear
The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.
Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.
Hope
While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.
Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.
Frustration
Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.
Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.
Boredom
Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.
Tip: Open an online demo account and get your thrills without risking real money.
