Builder of world's tallest tower reports higher property sales in the emirate in second quarter
Emaar Properties, Dubai's largest property developer, posted a 10 percent increase in second-quarter net profit on Monday, beating analysts' forecasts, on higher property sales in the emirate.
The builder of the world's tallest tower, the Burj Khalifa, reported a profit of AED675m ($183.8m) for the second quarter, higher than the AED614m it posted in the same period in 2012, it said in a bourse statement.
A Reuters poll of five analysts had predicted an average net profit of AED563.4m.
Revenue for the quarter was AED3.1bn, up 48 percent from AED2.1bn in the prior-year period.
The developer, which has announced several new projects, said total sales value in Dubai for the first half of the year was AED6.3bn, four times the sales during the same period in 2012.
To date, Emaar has handed over 36,600 units including some 20,900 apartments and around 15,700 villas, it said.
Dubai's real estate market, which has rebounded from a 50 percent drop in home sales prices after the 2008 financial crisis, has seen average residential rentals grow by over 30 percent over the past 12 months, consultancy CBRE said in a report on Monday.
However, the report warned that Dubai's residential sector was showing increasing signs of overheating with lease and sale rates rising far too quickly to be justified by the current economic environment.
Emaar, which has gradually branched out of the home sales business, said revenue from its hospitality, leisure and malls businesses was AED2.326bn, 45 percent of total revenue.
Shares in the developer have benefited from Dubai's real estate recovery, rising 52.8 percent this year. On Monday, it closed 0.2 percent up on Dubai's bourse, before the announcement of earnings.