Nakheel sees profits double to $299m

Results are a reflection of buoyant market conditions in Dubai

Nakheel announced that its net profits had increased by 97% compared to 2011.

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Nakheel announced on Monday that its net profit had nearly doubled to $299m for the first nine months of the year, on the back of fresh sales and retail and leasing activities.

This was an increase of 97% when compared to a net profit of $163.3m in September 2011. Revenues for this year were up by 126% to $1.22bn as compared to $544.5m during the same period in 2011. Non-development business for the company mainly comprised of retail and leasing, which contributed positively to the bottom line, the company said in a statement.

“These robust results are a reflection of the buoyant market conditions in Dubai and the ability of Nakheel to leverage the assets it has developed,” the company said.

“Prices in the flagship development of Palm Jumeirah have crossed pre-crisis levels, a definite sign of customer confidence and trust returning to the market. Further, the delivery of completed units and the near 100% occupancy of the retail and leasing asset portfolio have augmented the profitability of the business for the current period.”

Since the property developer has undergone restructuring (up to the period September 30 2012), it has delivered approximately 4,000 units to customers. These units have primarily been delivered in the Palm Jumeirah, Jumeirah Village, International City, Al Furjan and Jumeirah Heights residential developments.

The company added that most of the properties currently under construction are expected to be handed over to customers by the last quarter of 2012 and in the subsequent year.

Nakheel added that it aimed to proactively evaluate and assess various development projects, including retail, which it expects to be implemented during subsequent periods, in order to deliver sustainable communities and quality assets.

The company has also embarked upon a number of development projects such as the Palma Residences and Palm Views on Palm Jumeirah, as well as the most sought after residential development in Jumeirah Park.

It added that more projects are in the pipeline to cater to the growing demand for quality product offerings in the right location.


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