RAK Properties Q1 revenue grows by 141%
The developer’s success is said to be driven by the rapid sell-out of new projects and a batch of successful handovers
RAK Properties posted revenues of $70.4mn for Q1 2023 compared to $29.2mn during Q1 2022, the developer has announced. Meanwhile, net profit for the period increased to $12.1mn, as opposed to $8.3mn for the same period last year.
The performance represents a year-on-year increase of 141%, with growth driven by strong customer demand for new project launches in Abu Dhabi and Ras Al Khaimah, as well as the large-scale handover of completed residential developments to owners. The company’s hospitality assets have also added significant value to revenue streams, strengthened the balance sheet and driven the appeal of Mina Al Arab as a lifestyle destination, the developer explained.
Development highlights for RAK properties during the successful Q1 2023 include: rapidly selling-out all the released units in its Julphar Residence apartment building located on Reem Island in Abu Dhabi; positive investor and end-user demand for Bay Residences, located on Hayat Island, Mina Al Arab. The apartment buildings launched as part of Bay Residences Phase 1 have been fully sold out and their construction is currently underway and on schedule according to the development plan. The Bay Residences Phase 2 launch received a similar response with two apartment buildings consisting of 324 apartments; construction is ongoing for Gateway Residence 2, a 146-apartment residential building located on Hayat Island, and sales are in process; the sales programme for Marbella Villa Phase 2 comprising of 89 villas and townhouses was also launched during Q1. Construction has begun and is progressing well on schedule.
In mid February 2023, RAK Properties said it had awarded the main contract for its residential project to Gulf Contracting and, in late April 2023, Wynn Resorts revealed the name and design vision of its $3.9bn RAK hospitality project.
Commenting on the results, Sameh Al Muhtadi, CEO of RAK Properties stated, “This set of results signals the beginning of a new phase of growth driven by our re-envisioned development pipeline. Sales from our launch of 679 units in Q1 have been driven by enthusiastic demand from end-users locally and by strong interest from international investors.”
“We have a very exciting period coming up, with further new launches in Q2 and the second half of the year. Our primary focus is on introducing new residential developments, forging partnerships that enrich our communities and focusing on transformation projects within existing locations throughout the emirate of RAK. We remain committed to pursuing growth opportunities and investing in strategic acquisitions. With a robust liquidity position supporting us, we are strongly placed to successfully execute our long-term growth strategy. We are dedicated to RAK’s vision 2030 and the real estate mandate by developing destinations that feed into the economic, societal, and environmental pillars of the emirate,” he concluded.
In early May 2023, Gulf Asia was appointed as the contractor for Bay Residences by RAK Properties.
