Developer reports 16.2% drop in first-quarter profits
Developer Damac expects between 11,000 and 12,000 residential units to hit the Dubai market this year, an increase on previous years, it has been reported.
The group’s chief finance officer Adil Taqi told Reuters that this year’s supply will not be far off demand, reflecting a move towards stability.
“The real estate market in its entirety has turned a corner,” he is reported as saying.
Damac this week reported a 16.2% fall in first-quarter net profit as sales costs rose.
During the first three months of 2017, Damac recorded revenues of AED 1.95 billion, with gross profit margins at 54%, it said in a statement. Net profit for the reporting period stood at AED 880 million, achieving net margins of 45%. Total assets increased by 6.3% to AED 26.17 billion compared to AED 24.63 billion at year-end 2016.
Hussain Sajwani, chairman of Damac, said: “As we highlighted in our FY 2016 results, the Dubai real estate market has stabilised; this was especially visible in the last few months of 2016. With no major fluctuations in prices but with an increase in volumes and transactions in the market in general, we can say Q1 2017 has been strong, with booked sales of AED 2.2 billion. There is continued demand for quality real estate that presents better value. Despite the challenging market conditions, our medium to long term outlook remains positive, as we remain dynamic and continue providing the right products that suit the changing market needs.”