Dubai Real Estate: Dubai Mall and Emaar Malls are Outperforming
Dubai Mall recorded 80 million visitor arrivals in 2015. Various Emaar malls together received more than 124 million visitors, registering an increase of 9 per cent compared to 2014.
‘The shopping malls business will gain further traction with the launch of a dedicated Retail District in Dubai Creek Harbour and the expansion of The Dubai Mall by another 1 million sq ft built-up area, while our hospitality business will see the ambitious launch of several new hotels and serviced residences in Dubai and other international markets under our three hotel brands including the newly launched value lifestyle Rove Hotels,’Chairman Mohammed Alabbar said at the company’s annual general meeting.
The shopping malls & retail and hospitality & leisure businesses recorded recurring revenues of AED 5.788 billion (US 1.576 billion), 42 per cent of the total revenue. The hospitality & leisure business outperformed the broader hospitality market with the average annual occupancy at The Address Hotels Resorts at 86 per cent.
Emaar announced its annual general meeting that revenue from international operations increased by 46 per cent to AED 2.620 billion (US 713 million), accounting for 19 per cent of the total revenue.
With assets valued at over AED 165 billion (US 45 billion) and a land bank of 196 million sq m in the UAE and international markets, Emaar recorded full-year 2015 net operating profit of AED 4.383 billion (US 1.193 billion), 18 per cent higher than the FY2014, and revenue of AED 13.661 billion (US 3.719 billion), 33 per cent higher than the previous year.
In the UAE, total sales in 2015 were over AED 10.23 billion (US 2.79 billion) while sales across various international markets in 2015were valued at AED 5.05 billion (US 1.37 billion). Emaar listed its country-subsidiary, Emaar Misr on the Egyptian Exchange, which recorded an increase in in-country revenue of 74 per cent in 2015.
The AGM approved a cash dividend of 15 per cent of the share capital, equivalent to AED 1.074 billion (US 292 million), for distribution to the shareholders.
Mohamed Alabbar said that 2016 will be a significant growth year for Emaar having recorded robust results led by the positive growth of the Dubai economy.
‘With all core sectors of the economy performing exceptionally well, and with the preparations for the Expo 2020 Dubai progressing in full swing, the coming years will witness healthy growth trends in Dubai that support all the three core businesses of Emaar property development, shopping malls & retail and hospitality & leisure.’
‘We are setting new benchmarks this year, particularly with the opening of Dubai Opera, a multi-format events venue in Downtown Dubai. Emaar has also rolled out the magnificent tower that will form the vibrant heart of Dubai Creek Harbour, a one-of-a-kind masterplannned community that will further energise the city by welcoming visitors from around the world,’ he added.
Alabbar said that Emaar’s strategy of developing prime real estate assets that meet the real demand for world-class residences in central locations is further highlighted by the progress in Dubai Hills Estate and the launches of high-end homes in Downtown Dubai and Arabian Ranches. Emaar is also expanding its development portfolio in high-growth international markets including Saudi Arabia, Egypt, India and Turkey, among others, where the company has unveiled several world-class master-planned communities.