RAK Properties, the developer backed by the Ras Al Khaimah government, yesterday posted a 56 per cent drop in profits for the first half of the year on the back of lower sales.
The company reported a profit of Dh22.7 million, compared with Dh51.6m for the same period last year. Revenues also declined by 38 per cent to Dh92m, down from Dh149.4m a year earlier.
RAK Properties, which has assets of Dh4.8 billion, is currently working on the completion of the first phase of its Flamingo Villas and the Bermuda Villas projects within the Mina Al Arab complex — a master development containing six different districts on the emirate’s coastline.
In a statement accompanying its accounts, the company’s managing director and chief executive Mohammad Sultan Al Qadi said that the first phase of its 104-unit Flamingo Villas will be completed by the end of the year. The second phase was launched in May.
He added that the 157-unit Bermuda Villas project will be completed during the second half of next year, and that RAK Properties was in advanced stages of talks with an operator to manage a luxury hotel at Mina Al Arab. Designs for the new hotel and tendering documents are already being prepared.
RAK Properties also announced that the company will finally begin work on the Julphar Residence tower in Abu Dhabi — a 24-storey tower planned for Reem Island. The plan was announced in 2008.
In its first-quarter property report for the Northern Emirates, the consultancy Asteco said that sales of villas in Mina Al Arab continued to be popular with expatriate buyers because if “their good value for money”.
Apartment rents in the emirate dropped by 1 per cent, however. A two-bed apartment costs between Dh28,000 and Dh50,000 a year to rent, but can range between Dh50,000 to Dh70,000 in newer developments.
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