The Abu Dhabi-listed Aldar Group's Q1 net profit surged to 1.6 billion UAE dirhams ($436 million) in Q1 2024, up 88% year-on-year (YoY), on continued growth in demand for homes in the UAE.

The profit beat analysts’ mean estimate of AED 1.03 billion, according to LSEG data.

Group revenue for the UAE real estate developer and investor stood at AED 5.6 billion at Q1 2024, up 83% YoY, with EBITDA at AED1.8 billion or a 90% YoY growth.

In a statement on ADX on Monday, Aldar Group attributed the growth to strong development sales, which were up 39% YoY with sales of AED 6.3 billion, bolstered by three project launches in Q1.

Talal Al Dhiyebi, group CEO said: "Aldar's exceptional first quarter results reflect the strength of the real estate market in the UAE, particularly in Abu Dhabi, where the emirate’s growing appeal as an international investment destination is driving our growth."

Aldar Properties posted a Q1 net profit of AED 1.049 billion, attributable to owners of the company, up from AED 546 million in the same period last year.

Aldar Development’s revenue increased 103% YoY to AED 3.9 billion, which the company said was “primarily driven by successful execution of the revenue backlog on the back of a number of major projects.”

A continued growth in demand for UAE homes with overseas and resident expat buyers accounted for 75% (AED 4.6 billion) of Aldar’s UAE sales.

Aldar Investment’s adjusted EBITDA of AED 693 million was 29% higher YoY driven by operational performance, expansion of the Aldar Estates platform and bottom-line contributions from recent acquisitions, the company said. Its liquidity position stands at AED 4 billion in free cash and AED 6 billion in undrawn committed credit facilities.

(Reporting by Bindu Rai, editing by Brinda Darasha)