As UAE property market has been witnessing some of the low phases in the last few years, the significant sales growth shown by few of the Dubai-based property developers has given a sign of recovery. Emaar Properties and Damac Properties are the ones which have shown a rise in their net profits.
Emaar Properties, the developer of Burj Khalifa, confirmed that the net profit in the final quarter has risen by 56 per cent boosting the quarter’s revenue by 16 per cent to Dh 4.4 billion. Moreover, the company has sold over Dh14.4 billion worth of real estate in the year of 2016 which is 41 per cent higher than the last year.
Damac Properties, on the other hand, reported a slight growth of 1.3 per cent in the net profit for the fourth quarter marked at Dh854.6 million. However, the company’s entire year’s net profit is decreased by 18.1 per cent. It has generated the profit due to its growth in land sales. Also, Damac completed 600 hospitality units in Damac Maison Royale The Distinction and Damac Maison Bay’s Edge.
“Damac produced significant growth in land sales revenues in Q4 as compared to last year and this was the primary driver of growth. Growth at Emaar, on the other hand, was a function of a strengthening in execution in property developments and the reversal of Dh301m in losses that were booked on The Address hotel last year,” says Mohammad Kamal, Executive Director, Equity Research, Arqaam Capital.