RAK Properties triples H1 profit in 2023
Strong first half-year for developer, as intense demand drives revenues to $140mn
RAK Properties has recorded solid growth for the first half of the year with a 164% jump in its revenue, hitting $140mn, primarily propelled by robust demand for new project launches in both Abu Dhabi and Ras Al Khaimah. This is also combined with the successful handover of completed residential projects.
Announcing its financial results for the six-month period ended 30th June, 2023, RAK Properties said its net profit surged more than three-fold to hit $24.01mn from $6.96mn last year. Additionally, the company’s hospitality assets played a crucial role in enhancing revenue streams, fortifying the balance sheet, and elevating Mina Al Arab’s allure as a premier lifestyle destination in Ras Al Khaimah.
During the first half, RAK Properties said it had seen intensified demand for its projects in both Abu Dhabi and Ras Al Khaimah, underscoring the strong market interest in the company’s offerings.
For example, all the units that had been released at the Julphar Residence apartment building on Reem Island, Abu Dhabi, were sold out; and over 75% of sold units have been handed over, with the ongoing handover process continuing for the remainder.
According to RAK Properties, the beachfront residential buildings are experiencing strong demand, as demonstrated at Bay Residences, located on Hayat Island, Mina Al Arab. At Bay Residences Phase 1 all units are sold out and both towers are under construction, with development on track according to the plan, the developer said.
Meanwhile, Bay Residences Phase 2, comprising 324 apartments, proved hugely popular when sales were launched in Q1 2023, with all units fully sold out by H1 2023. Construction has commenced and is progressing as per the set timeline.
On the solid performance, CEO Sameh Al Muhtadi said: “These remarkable results mark the onset of an exciting phase of growth, fuelled by our re-imagined development pipeline and designs. We are witnessing enthusiastic demand from both local end-users and international investors driving our sales across the board. Looking ahead, we have an exhilarating period in store, with multiple launches to be announced in the coming months. Our primary focus remains on driving transformational projects within existing locations across Ras Al Khaimah, where we have further developments planned that align with our dedications to RAK’s Vision 2030. As we steadfastly pursue growth opportunities, we are committed to investing in strategic acquisitions and maintaining a robust liquidity position to support our long-term growth strategy.”
