Dubai property developer Deyaar reported a more than fourfold jump in its third-quarter profit on higher revenue as the UAE’s property market continues to rebound from the coronavirus-induced slowdown.
Net profit for the three-month period ending September 30 climbed to Dh36.34 million ($9.89m), from Dh8.1m in the same period in 2021, the company said on Thursday in a filing to the Dubai Financial Market, where its shares are traded.
Revenue in the third quarter surged 72 per cent annually to Dh207.7m, from Dh120.7m in the same period in 2021.
“Deyaar continues to demonstrate a strong financial performance in 2022.... boosted by the positive trends recorded by the UAE’s real estate sector," said Saeed Al Qatami, chief executive of Deyaar.
The UAE’s property market continues to recover from the pandemic on the back of government initiatives such as residency permits for retirees and remote workers, as well as the expansion of the 10-year Golden Visa programme and the economic boost generated by Expo 2020 Dubai.
In Dubai, average residential prices in the third quarter grew 9 per cent annually while average rental rates rose by 25 per cent, with both sales and rentals bolstered by more robust demand and increased buyer activity, according to a recent report from consultancy JLL.
In Abu Dhabi, sale prices during the three months period climbed 4 per cent while average rents increased by 2 per cent annually, the report said.
Off-plan and secondary property sales in Dubai reached a 12-year high in the third quarter, both in terms of volume and value, according to a report by Property Finder.
A total of 25,456 sales transactions worth Dh69.72 billion were recorded in the third quarter, marking an increase of about 62 per cent in terms of volume and more than 65 per cent in terms of value, compared with the third quarter of 2021.
Deyaar’s nine-month profit jumped more than threefold to Dh103.2m as compared to Dh30.8m during the same period last year as revenue during the period climbed 38 per cent to Dh577.1m, according to the financial statement.
The company's total assets grew 6 per cent to Dh6.1bn by the end of September compared with Dh5.79bn at the end of December last year. Total liabilities grew 17 per cent to Dh1.67bn during the same period.
In a separate filing, Deyaar also said the company's board has recommended to approve a Dh500m cash settlement offer made by Dubai-based developer Limitless.
The offer includes paying Dh200m immediately upon signing the agreement and completing the payment of Dh300m within a period not exceeding 18 months from the signing of the agreement between the two companies.
The board also suggested holding a general assembly meeting on November 21 to present the settlement offer to the company's shareholders for approval after obtaining the necessary permissions from the Securities and Commodities Authority, the company said.
In 2019, a UAE court ordered Limitless to pay Dh411.9m to Deyaar in a dispute related to the purchase of land. The court also ordered Limitless to pay fees and compensation of Dh61.1m to Deyaar.
"With Midtown’s Mesk and Noor districts on track for handover, alongside the successes achieved by the Regalia and Tria projects in attracting more investors with a sales record of more than Dh1.5bn and the proposed Limitless settlement, we are confident in our ability to achieve even more positive results during the next quarter," Mr Al Qatami said.
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Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
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Burnley Vokes (24', 43'), Ward (39')
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Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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UAE currency: the story behind the money in your pockets
'Ashkal'
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Day 3 stumps
New Zealand 153 & 249
Pakistan 227 & 37-0 (target 176)
Pakistan require another 139 runs with 10 wickets remaining
UAE squad
Humaira Tasneem (c), Chamani Senevirathne (vc), Subha Srinivasan, NIsha Ali, Udeni Kuruppuarachchi, Chaya Mughal, Roopa Nagraj, Esha Oza, Ishani Senevirathne, Heena Hotchandani, Keveesha Kumari, Judith Cleetus, Chavi Bhatt, Namita D’Souza.
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How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
The bio
Favourite book: Kane and Abel by Jeffrey Archer
Favourite quote: “The world makes way for the man who knows where he is going.” - Ralph Waldo Emerson, American essayist
Favourite Authors: Arab poet Abu At-Tayyib Al-Mutanabbi
Favourite Emirati food: Luqaimat, a deep-fried dough soaked in date syrup
Hobbies: Reading and drawing
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