RAK Properties Targets Record Home Handovers Amid Sales Slowdown
Developer maintains growth trajectory despite market volatility and recalibrated project launch schedules.
1Financial Performance Overview
RAK Properties reported revenue of Dh809.72 million and a net profit of Dh111.37 million for the first nine months of 2026. The company achieved a gross profit of Dh312.59 million, with EBITDA reaching Dh202.71 million. Earnings per share were recorded at Dh0.037, reflecting the firm's current operational stability and financial health.
2Record Handover Targets
The developer is preparing to deliver over 1,400 homes by the end of 2026, aiming for a record-breaking year. During the first nine months, 748 homes were made available for handover across projects like Bay Residences 2 and Granada Extension. An additional 691 units are scheduled for completion in the fourth quarter.
3Sales Slowdown Factors
Sales volume declined during the period, with 260 units sold for a combined Dh476 million. Management attributed this slowdown to regional volatility and a strategic decision to recalibrate the launch calendar. Despite lower volume, the average ticket price per unit increased to Dh1.83 million, up from Dh1.65 million the previous year.
4Pricing and Market Strategy
Selling rates remained steady at Dh1,916 per square foot as the developer avoided indiscriminate discounting. To counter the sales dip, the company began re-engaging international buyers in the third quarter. This outreach included targeted roadshows across western and central Europe, conducted in collaboration with various brokerage partners to boost interest.
5Revenue Visibility and Backlog
The sales backlog grew to Dh3.18 million, providing the developer with clear visibility on future revenue streams. This represents an increase from the Dh2.88 million backlog recorded a year earlier. Such growth in the backlog suggests sustained demand despite the recent softening in immediate sales rates across the broader market.
6Future Development Pipeline
RAK Properties is managing a pipeline with a gross development value of Dh5.4 billion launched from 2025. The company currently oversees over 5,000 homes in various stages of planning, design, and delivery. Construction contracts continue to be awarded across the Mina development, ensuring the project cycle remains on track for completion.
7Strategic Growth Outlook
CEO Sameh Muhtadi expressed optimism regarding the Emirate's future, citing major infrastructure projects and the anticipated opening of the Wynn resort next year. Chairman Abdulaziz Abdullah Al Zaabi noted that the company’s total assets of Dh8.9 billion position it well to advance growth plans and capitalize on emerging market opportunities.
8Land Bank and Expansion
The company holds approximately 924,862 square meters of undeveloped land across Mina and The Strand at Marjan Beach. This land bank represents 1.44 million square meters of potential gross floor area. Future plans include relaunching The Strand and Lunara in 2027, alongside Four Seasons-branded residences and hotel units in early 2027.
Original article: Khaleej Times — RAK Properties Targets Record Home Handovers Amid Sales Slowdown