Builders in the city, which is part of the United Arab Emirates, are reporting soaring profits and record sales. Dubai was the world’s third-largest luxury property market in 2024, up 16.9%, according to the Knight Frank City Index. The demand was driven by expats flocking to the city and foreign buyers rushing to capitalize on the boom, reported by Bloomberg.
Emaar Development PJSC, the construction arm of the conglomerate that built the world’s tallest tower in Dubai, reported record profits of $2 billion in 2024, double its 2022 profit. Binghatti Holding Ltd also more than doubled its profit from a year earlier.
Dubai’s property market is booming
In neighboring Abu Dhabi, Aldar Properties PJSC’s annual profit beat analysts’ estimates. The company’s revenue rose 62% year-on-year to 23 billion dirhams. Home prices are expected to continue rising next year. A growing population has fueled property prices, and they are likely to continue through 2025, albeit at a slower pace.
Dubai’s property market has seen a sharp decline in the past. However, the current boom has been sustained, fueled by the government’s handling of the pandemic and its liberal visa policy. Meanwhile, the emirate’s luxury real estate market, including waterfront villas on artificial islands shaped like palm trees, has benefited from an influx of wealthy investors. They included Russians looking to protect their assets, crypto millionaires and bankers who left their jobs in Asia.
Real estate firms are using their big profits
Profits are not always smooth, but smaller firms that were forced to restructure in past downturns have started to turn a profit. Among them was Deyaar Development PJSC, whose profit rose 7.5% to 473.9 million dirhams in 2024. Despite the darker spots, investors have broadly embraced real estate stocks.
A dozen analysts covering parent company Emaar Properties recommend that investors “buy” the stock. Its shares have risen more than 70% in the past year. Aldar shares have also risen more than 70% in the same period, while Deyaar shares have risen about 27%. Real estate firms are now using their big profits to continue construction to attract even more buyers. Developers are starting new projects amid expectations that homes are needed for new residents from around the world.