Property Developer Reduces Debt, Plans Expansion After Positive Quarter

Union Properties is experiencing a significant turnaround, marked by strong financial performance and strategic initiatives in Dubai's real estate market. In Q1 2025, the company saw an 18.2% year-on-year increase in revenue, reaching Dh163 million, and a 25.3% rise in gross profit to Dh42.8 million. This growth reflects increased demand, improved efficiency, and contributions from successful subsidiaries. Furthermore, the company is actively reducing its debt, repaying Dh179 million in legacy bank debt in Q1, with another Dh159 million scheduled for Q2, building on the Dh723 million repaid in 2024.

The company's financial restructuring strategy aims to improve long-term liquidity and profitability. CEO Eng. Amer Khansaheb highlighted the strong momentum entering 2025, emphasizing the strength of their business model and stakeholder trust. This positive performance follows the sale of land parcels for Dh1.3 billion, as part of a five-year strategy, with proceeds directed towards debt settlement and new project costs.

Union Properties is also re-entering the off-plan development market with the launch of the Takaya project in Motor City, its first in years. Two additional projects are nearing launch, and the company retains approximately 10 million square feet of gross floor area for future development. While Q1 administrative expenses increased due to marketing and sales efforts for upcoming launches, the company is actively seeking ways to boost liquidity and maximize asset value.

These positive financial metrics, along with ongoing debt reduction and new development activity, position Union Properties to capitalize on the continued strength of Dubai's real estate market. The company's strategic moves demonstrate a commitment to sustainable growth and a return to a more active role in the competitive property sector.