UAE-based property developer Binghatti Properties has announced plans to increase the value of its project portfolio to $27.2 billion (AED 100 billion) over the next 18 months, a company statement showed on Tuesday.
Doubling project portfolio
- The Dubai-based developer’s portfolio is currently valued at $10.9 billion (AED 40 billion), according to the statement.
- The company’s Chairman, Muhammad BinGhatti, stated that Binghatti Properties plans to launch 12,000 units over the next three months, supported by cash flows from projects valued at over $1 billion (AED 3.67 billion) that are set to be delivered within the same timeframe.
- Further, Binghatti said that the company has accelerated its land expansion activities by acquiring several plots in key districts across Dubai, including Palm Jumeirah, Business Bay, and Al Jaddaf. These investments aim to address the expected growth in demand for Binghatti properties over the next two and a half years.
Top investment destination
Binghatti said that Dubai is considered one of the world’s top real estate investment destinations, with a booming market characterized by consistent growth and a range of investment opportunities, according to the statement.
“Dubai’s properties remain attractive to both end-users and investors,” Binghatti said, as the average price per square foot is around $352, despite recent increases. This price is about one-third of that in London, where it reached $868 at the end of last year, he explained in the statement.
Dubai’s average price per square foot is less than half that of Singapore, which stands at $765, and slightly higher than half of Los Angeles’s average price of $663, he added.
“It is not only about the attractive prices, Dubai also offers diverse exceptional services & facilities everywhere, like airports, hotels, and restaurants,” Binghatti said.
Financial performance
This new expansion goal follows Binghatti Properties’ strong market performance in the first half of 2024.
Binghatti Properties reported a whopping 88.6% year-on-year rise in its profit to $181.7 million (AED 667.5 million) during the first half ended June 30, 2024, climbing from the $96.3 million (AED 353.9 million) profit recorded for the first six months of 2023.
The real estate developer’s total assets surged 106.2% year-on-year, totaling $2.4 billion (AED 8.7 billion) for the January–June 2024 period, as per its financial report.
Sukuk offering
Binghatti announced in July that its sukuk tap had been oversubscribed by 4.2 times, leading to an increase in the total size of its sukuk deal to $500 million.
Forbes ranking
Muhammad BinGhatti ranks 33rd on Forbes Middle East’s Most Impactful Real Estate Leaders 2024 list.
