Dubai’s latest master plan, which looks to expand the population by more than 70 percent over the next 20 years, will further fuel the demand for housing in the emirate, the CEO of UAE developer Deyaar Development said on Thursday.
In a bourse filing to the Dubai Financial Market (DFM), the listed company reported an increase in net profit of 15.1 million dirhams ($4.1 million) for the first three months of the year, up from 2.6 million dirhams a year earlier. The firm’s revenue also went up by 51 percent to 149.2 million dirhams.
Saeed Al Qatami, CEO of Deyaar, attributed the strong Q1 2021 performance to “high demand” for properties.
“We expect this demand to grow even more with the economic recovery in the emirate and the effort that the government takes towards executing the Dubai Urban Master Plan 2040,” Al Qatami said.
Last month, Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister of the UAE and ruler of Dubai, unveiled the mega master plan, which includes the expansion of green spaces, parks and other recreational areas in the emirate.
Under the plan, the city’s public beaches will increase in length by as much as 400 percent in two decades, while more land will be allotted for hotels and tourism. Dubai’s population is envisioned to expand to 5.8 million by 2040.
Analysts have said that Dubai is likely to attract more foreign workers and stimulate the demand for local housing through its ambitious master plan. The UAE has recently seen a surge in property sales, with many of the buyers snapping up residential units in established communities.
Most of the demand is concentrated in the ready properties segment, although some developers that announced new off-plan projects this year have seen residential units sold out in a matter of hours.
Early this year, Deyaar handed over its Bella Rose project, which features 478 apartments in Al Barsha South’s Dubai Science Park. The developer is also working on the third and fourth phases of another project called Midtown in Dubai Production City, with an additional 11 buildings under construction.
“We are able to achieve our results in the first quarter this year due to our continuous efforts and commitment to deliver our projects on time,” said Al Qatami.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
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