Emaar chief says 'flipping' needs to be controlled

Mohamed Alabbar also expects real estate business to increase dramatically on rising demand
By Reuters
Wed 01 May 2013 01:20 PM

Emaar Properties, Dubai's largest property developer, expects its real estate business to increase drastically, and its recurring income will also grow, chairman Mohamed Alabbar told reporters on Wednesday.

Alabbar also said market demand for homes in Dubai was very strong but "flipping", the practice of buying speculatively for quick resale, needed to be controlled.

Dubai's index fell for a second session this week as heavyweight Emaar Properties weighed after reporting a dip in first-quarter profit.

Emaar retreated 1.8 percent. The property developer posted an 8 percent slide in Q1 profit on Tuesday on higher selling and marketing costs.

Revenue increased 16 percent however, and the outlook for the company remains optimistic, suggesting investors may want to book profits after the recent rally.

 

 

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