The Dubai developer Nakheel has reported a 4% increase in net profit for the first half of 2016, despite the tough conditions and drop in property prices across the market as a whole.
Nakheel, developer of the Palm Jumeirah island, said it made a profit of AED2.95 billion ($803 million) during the period, compared to AED2.83 billion for the first six months of last year.
It handed over 1,177 units to customers, while the developer’s retail, residential leasing and hospitality businesses are “all performing strongly”, it said.
“Nakheel reached a number of milestones during the first half of 2016, including the opening of Dragon Mart 2 and the first of a series of expansions at Ibn Battuta Mall. Combined, these increased Nakheel’s existing retail portfolio by 35 per cent (1.1 million square feet), bringing the current operational total to 4.2 million sq ft,” it said in a statement.
“Nakheel is set to hand over more residential units to customers during H2 2016, starting at Azure Residences on Palm Jumeirah, with handovers at Jumeriah Park, Jumeirah Islands, Al Furjan and Warsan Village to follow.”
The results come after steep declines in residential real estate values across the Dubai market as a whole.
The property information service Reidin said in May that that Dubai apartment prices fell 0.75% in April 2016, marking a 7.3% annual decline. Villa sales prices increased 0.4% month-on-month but are still down 8.2% compared to last year.