In the report of the company «Truth» economic consultingTruth Consultancy
10% growth in demand for commercial land driven by «Expo 2020»
• Abu Dhabi – Abdel Fattah Montaser
Date: 07 May 2017
A local financial report predicts that the demand for commercial land in the country during the year 2017 will be completed by more than 10% compared to 2016, stressing that the establishment of «Expo 2020» in Dubai is one of the most important catalysts for the real estate market in the country,
The report also predicted that total invested capital by real estate companies, the main public shareholding listed on Abu Dhabi and Dubai Securities markets, would rise to about AED 243 billion by the end of the year, with expected annual growth By 8% compared to the end of 2016. The equity of these companies will contribute 51.8% to the financing of real estate invested in 2017, equivalent to about 126 billion dirhams. Current and non-current liabilities of long and short term loans and trade payables In the total amount invested by real estate companies during the current year, equivalent to about 117 billion dirhams.
In terms of revenues and profitability of real estate companies listed on the Abu Dhabi and Dubai Stock Exchanges in 2017, the report predicts that the total revenues of real estate companies in the UAE will reach AED 52 billion by the end of 2017, with an expected growth of 10% compared to 2016, Real estate companies registered on the Dubai and Abu Dhabi exchanges will exceed AED 12 billion this year.
The report revealed that total capital invested by major real estate companies listed in the Abu Dhabi and Dubai Securities markets rose to AED 225.6 billion at the end of last year, compared to AED 210.7 billion at the end of 2015, with an annual growth of 7%.
He pointed out that the volume of new investments of these companies in the real estate sector amounted to 14.9 billion dirhams in 2016. The general manager of the «Trout» economic consulting, the report showed that the total revenues of real estate companies rose to 46.9 billion dirhams during the last year, compared to 44.9 billion dirhams during In 2015, with an annual growth of 4%, an increase of about two billion dirhams.
The net profit of real estate companies listed on the Abu Dhabi and Dubai stock exchanges rose to AED 12.6 billion last year, an increase of AED 2.2 billion, compared to AED 10.4 billion in 2015. Total equity in real estate companies rose by 2016 Compared to AED111.3 billion at the end of 2015, rising to AED111.1 billion at a growth of 6%. This is due to the increase in accumulated profits and reserves in various forms during the past year.
Rida Mosallam said the report was based on a thorough and accurate analysis of the audited data of UAE real estate companies represented by 12 companies in the sector, including Aldar Properties, Manazel Properties, Sharjah Group, Ras Al Khaimah Properties and Ishraq Real Estate. Abu Dhabi Securities Exchange, Emaar Properties, Emaar Properties, Arabtec, Damac Properties, Drake & Scull, Union Properties and Deyaar Real Estate Development, listed on the Dubai Financial Market. A financial analysis was prepared for each of the selected companies, and a financial analysis was prepared for the total companies to be distributed to the sector See the UAE.
Return on capital
He pointed out that the real estate companies recorded a decline in the rate of return on capital by the end of 2016, which amounted to 17.3%, while at the end of 2015 by about 18.7%, reference to the decline in the capital of real estate companies during 2016.
The return on shareholders’ equity, capital and reserves and profits in real estate companies registered in the Abu Dhabi and Dubai markets declined from 9.6% to 8.4% at the end of 2016, reflecting the increase in the general reserve.
As well as the accumulated profits during 2016, and the rate of return on the total money invested in real estate companies 4.4%, compared to 5.1% in 2015, reference to the high total money invested in real estate companies during 2016.
The profit margins of real estate companies registered in the Abu Dhabi and Dubai markets were 25.3% at the end of 2016, up 3.3% from 2015 to 22%, indicating an overall reduction in costs associated with revenues in 2016 compared to 2015.