Aldar Properties has announced impressive financial results for the first half of 2024, highlighting strong growth in profit and revenue. The Abu Dhabi-listed real estate developer reported a 57% year-on-year increase in profit, reaching AED 3.3 billion. Revenue surged by 73%, totaling nearly AED 11 billion. The company’s performance in the second quarter was also notable, with the bottom line rising 37% to AED 1.8 billion.
A significant portion of Aldar’s sales, amounting to AED 10 billion, came from overseas and resident expatriate buyers, who made up 79% of total sales. The group has seen a broad expansion of its customer base, driven by the UAE’s appeal to international investors.
The commercial real estate sector, particularly Grade A office and retail spaces, has been a strong performer for Aldar. The company achieved a 97% occupancy rate for its commercial properties by the end of June, with demand for high-quality office space leading to rising rents. Al Maryah Tower in Abu Dhabi saw occupancy rates jump from 50% in its first operating quarter to 83% by the end of June.
Aldar also announced plans to develop its first commercial building in Dubai, strategically located between Sheikh Zayed Road and the Dubai International Financial Centre (DIFC). This project will include a tower featuring a luxury hotel and branded residences. The company continues to see strong demand for office space, especially from hedge funds, family offices, law firms, and other professional entities relocating to the UAE.
The company reported a record development backlog of AED 39 billion as of the end of the first half, with AED 33 billion from the UAE alone. This backlog is expected to contribute significantly to revenue recognition over the next two to three years.
In contrast to other global markets, such as the US and Europe, where office occupancy rates are struggling due to the prevalence of remote work, the UAE continues to see a high demand for in-person office presence. This trend has been a key factor in Aldar’s robust performance and optimistic outlook for the future.
