Abu Dhabi developer Aldar Properties saw tremendous growth in sales and profits in Q3 as overseas and expatriate buyers increasingly turned to the UAE capital for real estate investments.
Sales across the group reached AED7.8 billion during Q3, marking a 99 percent surge from the same period last year – accounting for the developer’s highest-ever quarterly sales.
During the first nine months of 2023, group sales reached a record AED19.4 billion, up 109 percent year-on-year on the back of 11 major project launches year-to-date and strong demand for Abu Dhabi properties from a growing surge in international buyers. Sales to international investors grew an impressive 160 percent year-on-year.
“The increasing interest from international buyers in our developments not only highlights the global appeal of Aldar’s offering but also reaffirms Abu Dhabi’s position as a preferred
destination for business, leisure, and long-term residency,” said Group CEO, Talal Al Dhiyebi.
“Our investment properties, particularly our thriving commercial portfolio, consistently exhibit solid operational performance and we are really seeing the positive impact of recent acquisitions across the office, retail, and hospitality sectors,” he added.
The financial boost from record sales flows through Aldar’s results. Net profit increased 48 percent year-on-year to AED0.9 billion in Q3. Revenue rose 27 percent to AED3.5 billion.
“Our home market, Abu Dhabi, is bolstered by a robust economy, and a regulatory environment that is conducive to business and investment. This positive backdrop has allowed Aldar to undertake a journey of transformational growth, including entry into regional markets such as Egypt, Ras Al Khaimah and Dubai,” said the company’s Chairman, Mohamed Khalifa Al Mubarak.
Al Mubarak added that, moving forward, the developer’s new strategy will take their expertise into “select international markets, with a particular focus on Europe.”
“We aim to target investments that are core to our current operations and across high-growth real estate sectors in mature markets that are characterised by strong fundamentals, demographic shifts, digitised economies, and evolving consumer preferences,” the Chairman added.
“We see this as an opportune moment to tap emerging trends and also to leverage new relationships to bring investment and innovation back to our core market, the UAE.”
Aldar’s development backlog stood at AED29.1 billion at the end of third quarter, providing revenue visibility for the next two to three years. Recent acquisitions and organic growth also positively impacted its recurring income business, with Aldar Investment’s EBITDA up 37 percent so far this year due to performance gains.
On the sustainability front, Aldar achieved lower ESG risk scores and involved tenants in decarbonisation through initiatives like green leasing. Such actions underscore its commitment to responsible practices as it builds on strong Q3 results and record-setting sales driven by global buyers flocking to opportunities in Abu Dhabi real estate.
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