Emirates Reit, Dubai’s first real estate investment trust, has reported a threefold increase in first-half profits as rents and prices grew in Dubai's long-stagnant office market.
The trust said that net profits for the first six months of the year increased to US$34.15 million from $11.6million - a gain of 194% - as rents in Dubai grew.
Just recently, consultancy CBRE reported that average prime office rents in Dubai’s central business district around Downtown Dubai rose 3% in the three months to the end of June and by a total of 25% compared to a year earlier to stand at an average of AED1,884 per square metre per year.
Emirates Reit, which floated on the Nasdaq Dubai in April, said that the value of its portfolio rose by 73% since the end of last year to $559.6m as the Reit purchased a major chunk of Index Tower in DIFC for $167m and the $32.1m Le Grande Community Mall in the Dubai Marina.
“We are confident that demand for commercial property in Dubai will continue to grow,” said Sylvain Vieujot, the executive deputy chairman of the Reit manager, a joint venture between Eiffel Management and Dubai Islamic Bank. “There are still significant opportunities within the Dubai market to invest at attractive prices in prime buildings, which offer substantial growth.”