Emaar's Q1 2025: Property Sales Up 42% to AED 19.3B, Backlog Hits AED 127B

In the first quarter of 2025, Emaar Properties PJSC (DFM: EMAAR) continued to build on its success from the previous year, delivering impressive results that demonstrate its ability to redefine industry standards. The company has shown consistent growth across its diversified portfolio, driven by its operational excellence, customer-focused approach, and commitment to creating long-term value for all stakeholders.

Key Financial Highlights for Q1 2025

> Sales Growth: Emaar achieved property sales of approximately AED 19.3 billion (US$ 5.3 billion), marking a 42% increase compared to Q1 2024 sales of AED 13.5 billion (US$ 3.7 billion).

> Backlog Expansion: The company's revenue backlog from property sales grew to AED 127 billion (US$ 34.6 billion) by March 31, 2025, reflecting a 62% rise from the same period last year, signalling robust revenue growth in the coming years.

> Revenue Increase: Emaar's Q1 2025 revenue reached AED 10.1 billion (US$ 2.8 billion), an impressive 50% increase over the same quarter in 2024.

> Profit Growth: The company reported an EBITDA of AED 5.4 billion (US$ 1.5 billion), up 24% from the previous year, maintaining a healthy margin of over 53%. Net profit before tax also saw a 27% increase, rising to AED 5.4 billion (US$ 1.5 billion) compared to Q1 2024.

> Record Dividend: Emaar declared a record dividend of AED 8.9 billion (US$ 2.4 billion) for its shareholders.

> Customer Satisfaction: Emaar remains committed to leading the industry in customer satisfaction by maintaining high standards in design, product quality, and community services.

> Talent Development: The company continues to prioritize investing in young talent through comprehensive training and development initiatives aimed at preparing future leaders in the UAE.

> Efficiency and Cost Control: Emaar remains focused on managing costs effectively while maximizing value and performance across all its business segments.

> Sustainability and ESG Efforts: Emaar has made significant strides in its sustainability initiatives, emphasizing resource efficiency, waste management, and responsible sourcing. This commitment has earned the company its third ESG rating upgrade from MSCI in four years.

> Credit Rating Upgrade: S&P Global upgraded Emaar’s credit rating to BBB+ with a stable outlook, underscoring confidence in the company’s financial strength and growth potential.

Mr. Mohamed Alabbar, Founder of Emaar, stated: “Every quarter is an opportunity to reinvent what’s possible — not just in how we build, but in how we think, lead, and connect. These results are more than numbers; they reflect the ambition of a team that refuses to stand still, and a community that inspires us to go further. At Emaar, we don’t follow momentum — we create it. Our journey is powered by people with bold ideas, by a culture that rewards curiosity, and by a commitment to shape the future with purpose and precision.”

UAE Property Development Success

Emaar Development PJSC (DFM: EMAARDEV) continued its strong momentum in the UAE’s property market. In Q1 2025, the company launched 12 new projects across various master plans, driving record property sales of AED 16.5 billion (US$ 4.5 billion), an increase of over 28% compared to Q1 2024.

Emaar Development’s revenue for Q1 2025 stood at AED 5 billion (US$ 1.4 billion), a 43% increase over the same period in 2024, with net profit before tax reaching AED 2.8 billion (US$ 753 million), a 49% growth compared to Q1 2024. Consolidated revenue for Emaar Properties' property development business in the UAE was AED 6.9 billion (US$ 1.9 billion) in Q1 2025, including Dubai Creek Harbour.

The revenue backlog for property sales in the UAE grew to AED 112 billion (US$ 30.5 billion) by March 31, 2025, indicating strong demand for high-quality residential developments in Dubai. The company plans to launch additional projects throughout the year.

Retail, Malls, and Commercial Leasing

Emaar’s shopping malls, retail, and commercial leasing sectors posted revenue of AED 1.5 billion (US$ 408 million) in Q1 2025. The EBITDA for this division stood at AED 1.3 billion (US$ 354 million). This growth was driven by improved lease rental renewals, increased tenant sales, and continued strong occupancy rates across key assets. As of March 31, 2025, the company's mall assets had an average occupancy rate of 98%.

International Operations Performance

Emaar’s international real estate operations recorded property sales of AED 2.8 billion (US$ 762 million) in Q1 2025, with revenue of AED 626 million (US$ 170 million). The performance was led by strong results from India and Egypt. Revenue from international operations accounted for approximately 6% of Emaar’s total revenue in Q1 2025.

Hospitality, Leisure, and Entertainment Growth

The hospitality, leisure, and entertainment segments generated AED 1.1 billion (US$ 299 million) in revenue, supported by a surge in tourism and domestic demand. Emaar’s hotels in the UAE, including those under management, achieved an average occupancy rate of 82% in Q1 2025. The company expanded its hospitality portfolio by adding two new hotels with over 600 keys, reinforcing its position in the sector.

Recurring Revenue Generation

Emaar’s recurring revenue-generating portfolio, which includes malls, hospitality, leisure, entertainment, and commercial leasing, delivered strong results in Q1 2025. This portfolio achieved a revenue increase of 11%, reaching AED 2.6 billion (US$ 707 million), with EBITDA of AED 2 billion (US$ 545 million), reflecting a growth of around 10% compared to the previous year. This portfolio continues to provide stable income and robust cash flows, contributing 37% of Emaar’s total EBITDA in Q1 2025.