Emaar Apartment Sales Revenue More Than Triples

Emaar Properties’ detailed financial statement showed quarterly revenue from apartment sales more than tripled from a year ago in contrast with a decline in sales of villas, commercial units and land.

Revenue from apartment sales rose to Dh566.9 million in the three months ending September 30, from Dh183.3 million in the same period last year, the company reported in a breakdown of its revenue on Sunday.

Revenue from villa sales dropped to Dh122.8 million from Dh126.4 million in the third quarter compared to the corresponding period last year, while income from the sale of commercial units and land declined sharply to Dh109 million from Dh798.4 million.

The three-fold increase in apartment sales coincides with the “noticeable increase” in demand that began in February when select developments, including Emaar projects such as Arabian Ranches and The Greens, saw a rise in prices over the second and third quarter, said Helen Tatham, Director of Residential, at Knight Frank.

“The release and 24-hour sellout of serviced apartments at Address Boulevard, Downtown, in September would contribute to a successful Q3 2012 together with a higher demand generally in comparison to Q3 last year,” she said.

Commenting on Emaar’s villa sales revenue, she noted: “Commercial units and land transactions have remained more static over the last 12 months but villa sales have increased. The reason behind the small change in year-on-year figures is most probably due to the limited villa stock being offered for sale by Emaar and is not a true reflection of the market.”

Going forward, analysts expect a continued trend of successful apartment sales.

“A well thought-through release strategy should stand every chance of success going forward,” Tatham said.

According to the detailed financial report released on Sunday, the developer’s revenue from condo sales in the first nine months of 2012 reached Dh1.54 billion compared to Dh823.9 million in the corresponding period last year, while villa sales rose to Dh602.5 million from Dh523.5 million.

In October, Emaar said that third-quarter profits dropped five per cent to Dh387 million year on year due to “seasonal trends.”

Gulf News