Two of the largest developers in Dubai have reported an increase in profits, which is being taken as an encouraging sign of market recovery.
Emaar Properties has released its figures for the three months to the end of December 2016, and the Dubai firm is showing impressive profits.
The figures revealed that the Burj Khalifa developer’s profits increased by 56%, climbing to Dh1.61 billion from Dh1.03 billion during the same three-month period in 2015. According to Reuters, this Q4 rise beat estimates by Sico Bahrain of Dh1.32 billion, but missed a projection by the Egyptian investment bank EFG Hermes of Dh1.63 billion.
Emaar revealed that its 4th quarter revenue increased by 16% to Dh4.4 billion, up from Dh3.8 billion for the same period last year, with a rise in the contribution from the company’s property sector as well as those from its retail and hospitality divisions. Emaar sold Dh14.4 billion worth of real estate during the whole of 2016 – 41% more than it had sold during 2015.
Meanwhile Damac Properties, Dubai’s second-largest developer, also reported a small increase in net profit for Q4 despite encountering “challenging market conditions”.
While Emaar reported a 28% total net profit increase for 2016 at Dh5.23 billion, Damac revealed that its net profit for the year had slumped by 18.1% to Dh3.69 billion.
“The Dubai real estate market in 2016 had stabilised over 2015, with no major fluctuations in prices,” explained Damac’s chairman, Hussain Sajwani.
“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.”
