By Parag Deulgaonkar
2016 will be remembered as year of market turmoil, macroeconomic pressures says Damac chairman Hussain Sajwani
Damac Properties chairman Hussain Sajwani has described Dubai’s property market conditions as “challenging”, after the company's net profit fell 11.7 percent for the third quarter 2016.
The Dubai developer reported a net profit of $245.6 million (AED902 million) for the three months ended September 30, down from AED1.02 billion a year earlier.
Sajwani said despite the current market conditions in the emirate, the property market is set for growth again in medium to long term.
“The market is definitely challenging, investors today are seeking better value,” Sajwani said in a statement, following the announcement of today's results.
"However, with a medium to long term view, we believe that Dubai is well positioned for continued growth, and we expect the city to consistently outperform more established metropolitan centers around the world,
“This outperformance is underpinned by ambitious infrastructure investments, and a stringent and efficient regulatory framework stemming from the Government’s vision to create a sustainable city which enhances the experience of those living, working and visiting Dubai.”
Revenue fell to AED1.75 billion compared to AED2.02 billion a year earlier, while cash and bank balances stood at AED8.90 billion. Development properties were recorded at AED .79 billion as of September 30, 2016.
The company delivered over 800 units in its Akoya by Damac development, bringing total deliveries to over 1,300 units in the nine-month period.
Despite some international projects facing “unforeseen delays”, the developer expects to meet deliver 2,700 to 3,000 units.
“2016 will be remembered not only as the year of market turmoil and macroeconomic pressures,” Sajwani said.
“At Damac, we have established ourselves as a market leader firmly positioned in the luxury real estate sector.
"Adding to this business model that is focused on returns and sales channel innovation, we have powerful differentiators that will support a continued pipeline of unique products with a range of properties and offers to address most sub-segments of our target customers.”
On Sunday, Reidin-GCP report said mid-market freehold communities in Dubai were showing marginal price recovery compared to high-end areas, but Phidar Advisory said prices will continue to decline throughout 2017 as slow demand growth delays any recovery in values.For all the latest real estate 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.