Real estate market ‘stabilised’ in 2016, developer’s chairman Hussain Sajwani said
The Dubai developer Damac saw profit rise by 1.3% in the last quarter of 2016, as the property market in the emirate ‘stabilised’.
The developer reported a net profit of AED 854.6 million dirhams ($232.7 million) for Q4, up from AED 844 million the previous year, according to Reuters calculations.
Damac did not provide a quarterly breakdown in its 2016 results posted to the Dubai Financial Market, but said it made a net profit of AED 3.69 billion in the full year.
Revenue stood at AED 7.16 billion, with gross profit margins at 56%, and cash and bank balances at AED 8.32 billion.
The board proposed a cash dividend of AED 0.25 per share amounting to AED 1.512 billion, subject to approval of shareholders.
The developer said it completed over 1,600 units in 2016 in the recently renamed Damac Hills development. Total deliveries for 2016 were recorded at over 2,400 units, 1,100 of which were delivered in Q4. During 2016, booked sales reached AED 7.05 billion, with AED 1.71 billion in the last quarter.
“The Dubai real estate market in 2016 had stabilised over 2015, with no major fluctuations in prices. There is demand for quality real estate but with the challenging market conditions we are operating in, what has changed is customers are seeking better value. Our medium to long term outlook remains positive, and we are well-positioned to accommodate and navigate these conditions,” said Hussain Sajwani, chairman of Damac.
“During the year, we launched a series of innovative products in our golf community AKOYA Oxygen that were priced to attract a wider audience, including first-time buyers and millennials, looking for properties in premium locations at an attainable price and with favourable payment terms. These investors were seeking to either diversify their current investment portfolio or were end-users with lifestyle aspirations.
“Due to the efforts of our visionary leadership, Dubai is consistently outperforming other regional as well as international markets. With a heavy emphasis on building world-class infrastructure that will serve the future needs of the emirate, and attracting investors and businesses to a hub that is easy to do business in, Dubai continues to be an attractive proposition for visitors and residents living and working in the city.”
“2016 was a year of market stabilisation and we will continue to innovate on our products to meet the demands of a wider audience of customers. Our business model is such that it supports a steady pipeline of luxury properties being offered with our main differentiator being a range of premium locations and value that we bring to investors.”