Emaar delivers 1,916 units in first half 2010

Dubai-based Emaar Properties has delivered 72 villas and 1,844 apartments in the first half of 2010, according to a company presentation.

The developer delivered 542 villas and 2534 apartments in 2009 compared to 1,041 villas and 3,935 apartments in 2008.

“All Dubai real estate projects are under construction, with no speculative, Dubai real estate development projects included in the forecasts. The majority of developments under construction will complete within the next two years,” the presentation (October 13) posted on the company’s website reveals.

“If sufficient pre-sales levels are not achieved, projects are rescheduled. Contracts signed with contractors provide Emaar with the flexibility to reschedule projects/development phases without incurring material costs/charges from contractors for work which does not go ahead.”

Over 75 per cent units in developments currently under construction are pre-sold, with customer default rates on pre-sold developments being low in 2009 since the bulk of installments have already been paid by customers.

Sales of inventory continued during 2009 despite poor market conditions with 200 units sold during the year. Gross margins of 46 per cent were maintained on 2009 sales.

Emaar has also leased over 80 per cent of unsold inventory in residential sector in first half of 2009, it said.

According to the presentation, the company plans to replicate its Dubai business model and practices in international markets, leveraging its execution capabilities and competencies in design, project management and distribution/sales.

In the UAE, Emaar has over 20 million square metre of land, while its international land bank includes over 240 million square metre across India, Saudi Arabia, Morocco, Pakistan, Syria, Turkey, Egypt and Jordan.

Internationally, the company concluded a number of successful development launches during 2009, selling 1,407 units excluding India.

“With global economic conditions forecast to improve in 2010, and improved Emaar brand awareness, Emaar remains confident of the success of the new launches over the forecast period.”

Emaar also expects over 40 million visitors to Dubai Mall in 2010 with mall assets likely to generate an estimated net annual cash flow of Dh1,250 million when fully operational.

“Overall footfall trend remained positive across mall division in 2009 with Dubai Mall now the busiest malls as measured by footfall in Dubai since opening in November 2008. The mall has already crossed over 33 million visitors with recent growth provides forecast of over 40 million visitors in 2010,” the company presentation revealed.

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