Damac narrows second-quarter loss amid property market recovery

The company reported a net loss of $27.5m for the three months to June-end, lower than $76.3m for the same period last year

Damac reported booked sales of Dh2.6bn for the first six months of the year and deliveries of 2,700 units in Dubai. Jeffrey Biteng / The National

Damac Properties, the UAE's third-biggest property developer by market capitalisation, narrowed its second-quarter loss amid continued recovery of the UAE's property market.

Net loss for the three months to the end of June reached Dh101 million ($27.5m), lower than the Dh280m it reported for the same period last year, the company said in a statement on Saturday to the Dubai Financial Market, where its shares are traded.

Revenue for the reporting period fell to Dh735.75m, from Dh1.14 billion a year earlier.

The company also reduced its loss for the first six months of the year to Dh290.63m, from Dh386.69m reported for the first half of 2020.

An increase in booked sales in the first half, however, also resulted in higher selling expenses to Dh1.01bn, the company said.

Damac, which built the Middle East’s only Trump-branded golf course, reported booked sales of Dh2.6bn for the first six months of the year and the delivery of 2,700 units in Dubai.

The company's narrowing of losses comes amid a gradual recovery of the UAE’s real estate market, as the Arab world’s second-largest economy rebounds from the pandemic-driven slowdown.

In July, the real estate market in Dubai recorded a 15 per cent rise in prices, as the vaccination programme and new stimulus measures boost investor confidence, according to Property Monitor.

The average property price in the emirate climbed to Dh941 per square foot last month, from Dh818 per square foot recorded during the same month last year, according to the monthly market report.

Overall, property prices in Dubai have jumped 11.8 per cent this year, mirroring the global trend in the property market as the world recovers from the pandemic. Prices rose 1.9 per cent in July compared to the previous month.

Separately, property developer Deyaar reported a 165 per cent increase in net profit for the second quarter.

The company's quarterly net profit rose to Dh22.6m, from Dh8.5m reported for the same period last year.

Revenue rose 70.3 per cent to reach Dh297.4m.

“We continue to focus on improving the efficiency of our business and meeting the growing demand for high-quality real estate projects. The company recently launched Regalia project, which will be a unique addition to the luxury real estate sector in Dubai,” Saeed Al Qatami, chief executive at Deyaar, said.

The company launched the Dh1bn 70-storey skyscraper development project in Business Bay last month.