Dubai developer Deyaar in the black in Q3

Company ekes out small profit in third quarter amid tough market conditions
Dubai developer Deyaar in the black in Q3
House prices in Dubai have fallen nearly 60% from their peak in 2008
By Reuters
Wed 02 Nov 2011 04:00 PM

Dubai developer Deyaar, the emirate's second largest
developer by market value, eked out a small profit in the third quarter and
reiterated it would hand over two towers by year end.

Deyaar, badly hit by Dubai's property bust, had a profit of AED600,000
(about $163,345) in the quarter ended Sept 30. That compared with a loss of AED145m
in the prior-year period.

The developer did not provide quarterly results. It said it
earned a net profit of AED45m in the first nine months of the year, compared to
a loss of AED489m last year, according to a statement on Dubai's bourse
website.

Revenues for the nine months to September rose 54 percent to
AED665m year-on-year, it said, adding it would deliver an office tower and
residential tower in Dubai this year.

Dubai's housing market will lose another 10 percent of its
value before it starts to improve, possibly not until 2013, a Reuters poll in
October showed.

House prices and rents in the Gulf emirate have already
plunged nearly 60 percent from their peak in 2008.

Deyaar's shares closed 0.4 percent lower on Wednesday, in
line with weakness on Dubai's bourse. It released results after market close.

Rival Dubai developer Emaar Properties reported a
34 percent drop in third quarter net profit last month.

For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.