UAE: Deyaar to Launch AED1.5bn Project in Dubai by Year-End

Dubai-listed Deyaar Development is set to launch an AED1.5 billion ($408 million) project in Dubai by the end of this year, with plans for more than 1,000 units. The project, located in Dubai Production City, is expected to be completed within two years. Deyaar's CEO, Saeed Al Qatami, shared that the company anticipates revenue growth of 15 to 20% in 2025, driven by the ongoing boom in the UAE’s real estate sector.

The new Dubai project announcement follows Deyaar's launch of its first residential development in Abu Dhabi this week. The AED800 million Rivage project, located on Al Reem Island, will feature over 300 one-, two-, and three-bedroom units, with prices starting at AED1.2 million.

The UAE property market has experienced significant growth in recent years, buoyed by government initiatives such as residency permits for retirees and remote workers, along with the expansion of the 10-year golden visa program. Additionally, the country’s economic diversification efforts continue to support the robust property market.

In the third quarter, average prices in Dubai’s residential market rose by nearly 20% year-on-year, driven by a 19% increase in average apartment prices and a 23% rise in average villa prices, according to a report by CBRE.

In Abu Dhabi, average apartment prices saw a year-on-year increase of almost 9%, while average villa prices grew by over 8% during the same period. In the first three quarters of this year, 1,442 apartments and 593 villas were completed in Abu Dhabi, representing 22.8% of the residential units expected to be delivered in 2024, according to a recent report by ValuStrat. Overall, 8,907 residential units are scheduled for completion in Abu Dhabi next year.

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Deyaar also plans to launch additional projects in Dubai next year and is exploring opportunities in the Northern Emirates as part of its expansion strategy, Al Qatami said. These new developments will be funded through Deyaar’s own resources, though the company will consider bank financing if necessary. “We have strong liquidity of nearly Dh1.8 billion to support new projects,” Al Qatami added.

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As of the end of September, Deyaar’s cash and bank balances stood at AED1.77 billion, up from AED1.33 billion at the end of December. The company’s borrowings totalled AED453.6 million, while total assets reached AED6.75 billion, an increase from AED6.5 billion in December.

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The company reported a third-quarter profit after tax of nearly AED140 million, marking a 17% year-on-year increase, while revenue rose 21% to AED376 million. Deyaar expects its full-year profit for 2024 to exceed that of 2023, with anticipated annual revenue growth of 15 to 20% in 2025 as it continues to sell more homes, Al Qatami said.

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Earlier this year, Deyaar launched an AED700 million project in Dubai’s Jebel Ali, and its Rosalia Residences project in Al Furjan sold out quickly in January.

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Currently, demand is matching supply in Dubai’s residential market. While more supply is expected next year, Al Qatami believes this will not drastically affect prices but will likely help stabilize the market. He also noted strong interest in Dubai real estate from buyers in India, the Far East, Europe, and Turkey.