Dubai property developer Deyaar reported a four-fold surge in its second-quarter profit on the back of higher revenue as the UAE’s property market continues to recover from the coronavirus pandemic.
Net profit for the three month period to the end of June climbed to Dh32.7 million ($8.9m) from Dh7.54m in the same period a year earlier, the company said in a statement on Thursday to the Dubai Financial Market, where its shares are traded. Revenue during the period rose about 40 per cent to Dh207.5m from the same period last year.
“Revenues from development activities have increased as we started recognising revenues from the sales of our Regalia project, as the construction of the project is progressing according to schedule,” Saeed Al Qatami, chief executive of Deyaar, said.
“The hospitality portfolio performance continues to grow in line with the strong recovery of the tourism sector in the UAE.”
The UAE's property market grew sharply in 2021 as it recovered from the coronavirus-induced slowdown. The trend has continued this year as the country’s economy remains on a strong growth trajectory.
Pent-up demand and improved investor sentiment have also helped to drive property sales, particularly in Dubai and Abu Dhabi, amid the pick-up in economic activity.
During the second quarter of this year, villa sales prices in Dubai jumped 26 per cent annually and apartment prices increased 20 per cent amid a broader recovery in the country's property market, according to a new report from Asteco this week.
“Last month, the company successfully executed its capital reduction to write off the accumulated losses, which will increase the company's attractiveness to investors and will reflect positively on Deyaar’s share price in the Dubai Financial Market," Mr Al Qatami, said.
Deyaar, which is majority owned by the UAE’s biggest Sharia-compliant lender Dubai Islamic Bank, in April said it will reduce the capital by Dh1.4 billion to Dh4.38bn.
The developer's first-half profit grew 196 per cent to Dh66.9m as revenue rose 24 per cent to Dh369.4m, according to the company.