Damac Properties has reported lower sales in the third quarter of 2015, although year-on-year profit was still 24 per cent higher at Dh1.02 billion.
Revenue for the quarter fell by 5 per cent year-on-year to Dh2 billion in a slowing Dubai property market. Earlier this week, an Abu Dhabi Investment Bank / MPM Properties report stated that the total value of residential transactions completed in the Dubai market fell by 8.6 per cent over the past quarter to Dh4.22bn.
Damac reported revenue for the first nine months of the year of Dh6.8bn and net profit of Dh3.67bn. Although no direct comparison can be made with last year's figures as the company only made its debut on the Dubai Financial Market in January, this represents a 17 per cent increase in revenue and a 10 per cent growth in profit when compared with the performance of its London-listed predecessor Damac Real Estate Development last year.
Damac’s senior vice president Niall McLoughlin said the company had made progress on several fronts, including construction at its 42-million square foot Akoya by Damac, where the “first few hundred” residents are due to receive their homes by the end of the year.
He also said the firm has worked hard on selling properties in overseas markets, completing more than 230 roadshows across a variety of international markets, including Africa and China.
“We have been very pleased with the early work conducted in China, where we have been investing heavily in partnerships and training programmes, resulting in more than 8,000 sales staff across Beijing, Shanghai, Hangzhou and Tianjin learning about luxury living options in Dubai,” he said.
“We have also met more than 600 investors in August and a further 200 in September.”
Booked sales during the first nine months reached Dh7bn, which was marginally ahead of the Dh6.95bn achieved in the same period last year.
Damac chairman Hussain Sajwani said that growth in Dubai’s real estate market had undergone “stabilisation” during 2015.
“This is a natural progression for any developing market which ensures long-term sustainability,” he said.
The company said that it expects to deliver approximately 2,500 units to the market this year, which is in line with previous guidance it had given to the market.
mfahy@thenational.ae
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