Emaar, Aldar lead surge in UAE's real estate stocks

08/05/2025 01:43 AST

With strong fundamentals, real estate and construction stocks continue to capture investor attention across the UAE.

According to eToro's recent Retail Investor Beat survey, 52.5 per cent of investors see real estate and construction as the most promising sector over the next 12 months, ahead of even the fast-growing technology sector, which came in at 42 per cent.

"Dubai and Abu Dhabi's property markets remain two of the hottest globally, fuelled by population growth, foreign investment, and demand for premium developments. This strength has translated into solid returns for listed developers in the last year, such as Emaar Properties (+72 per cent) and Aldar (+40 per cent). Aldar's Q1 results, reported in late April, showed why this real estate is attracting investor attention with a 33 per cent rise in net profit and a 42 per cent jump in development sales. What's helping businesses like Aldar and Emaar is the UAE's stable economic environment, which continues to support their growth," Josh Gilbert, Market Analyst at eToro, said in a note.

Developers like Emaar and Aldar are also integrating sustainable practices, with projects like Dubai Hills Estate targeting green certifications, enhancing long-term investor appeal.

Although it's been a great year, the period ahead doesn't come without risks. "Developers across the UAE are growing increasingly concerned about the rising price of key construction components such as steel, aluminium, etc., driven by President Donald Trump's tariff rollout. Those cost pressures could cloud projects from a timing perspective," Gilbert said.

Dubai's thriving real estate market set a new all-time monthly sales record of Dh62.4 billion in April, a 95.3 per cent increase in value on the same month last year.

Data from DXBinteract shows major increases in the number of transactions across all real estate sectors for April compared with last year, topped by 3,223 villa sales - a 134 per cent rise in volume - worth Dh23.7 billion.

According to data from Property Finder, a real estate portal, the primary property segment led the charge on Dubai real estate, with sales touching Dh 34.2 billion in value, a 124 per cent increase from April 2024.

Uncertainty from tariffs could drive investors to focus on stability and yield, something property in the UAE can offer. Therefore, the positive is that real estate in the region will be seen as something of a safe haven, which would mean continued demand for developers. Emaar, for example, doubled its dividend to Dh8.8 billion, fuelled by record property sales and strong market demand. That dividend looks set to keep increasing over the next few years as its cash flow continues to grow with continued market expansion and growth.

Another advantage is the region's diversified trade relationships, which help cushion against sharp import cost spikes. However, ongoing global supply chain volatility could still push up material costs and pressure short-term profitability.

"Real estate remains one of the most dynamic and widely supported sectors in the UAE, with investors clearly bullish on the industry, given that it is a sector that offers both growth and yield opportunities. Global macro headwinds will remain an overhang for the whole world, but the UAE, particularly real estate, looks well versed to navigate the challenges ahead," Gilbert said.

Khaleej Times