Aldar Properties, the largest property developer in Abu Dhabi, reported a 7 percent increase in net profit at 476 million dirhams ($129.59 million) for Q2 2019 due to higher revenues.
The developer behind Abu Dhabi’s formula one circuit, posted a 10 percent rise in revenue at 1.66 billion dirhams in Q2 2019.
“There is an upswing in sentiment towards Abu Dhabi‘s real estate market with the recent announcement of our AED 9 billion worth of development projects since the start of 2019. Those, coupled with government initiatives to spur economic growth, are having a positive multiplier effect on the wider Abu Dhabi economy and stirring confidence. This is reflected in our strong performance for the period, underpinned by near AED 2 billion in off plan sales,” Talal Al Dhiyebi, Chief Executive Officer at Aldar Properties said in a statement from the company.
Talal Al Dhiyebi, CEO, Aldar Properties. (Image courtesy of Aldar Properties)
Aldar’s revenue for the first six months of the year surged 15 percent to AED 3.42 billion mainly on the back of activity on key developments under construction.
In H1 2019, Aldar’s off-plan development sales rose to 1.9 billion dirhams, up 78 percent from H1 2018. For Q2 2019, off-plan sales recorded 853 million dirhams, up 129 percent from Q2 2018.
According to the property developer the surge in off-plan sales is primarily driven by the successful launches of Lea and Alreeman II as well as sales on existing projects under development including Yas Acres.
“The wheels of change are in motion and Aldar is well positioned and well-funded to capitalise on emerging opportunities,” Al Dhiyebi said.
(Reporting by Gerard Aoun; Editing by Seban Scaria)
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