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Mon 12 Aug 2013 05:10 PM

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Dubai’s Emaar doubles housing and land sales

Developer behind the Burj Khalifa generated revenue of AED1.63bn ($443.78m) in the three months ending June 30

Dubai’s Emaar doubles housing and land sales
Emaar has fared better than rivals through the crisis thanks to a greater reliance on retail and hospitality.

Dubai's Emaar Properties said on Monday its revenue from housing and land sales doubled in the second quarter as investor sentiment toward the emirate's real estate market improved.

Property prices in the emirate slumped by half after the 2008 financial crisis.

Emaar, Dubai's biggest real estate developer, has fared better than rivals through the crisis thanks to a greater reliance on retail and hospitality, businesses with more stable revenue streams than the construction and sale of homes and offices.

Emaar sold a series of projects this year, cashing in on renewed optimism in Dubai's property market buoyed largely by a return of speculative buyers in the home sales segment.

The builder of the world's tallest tower generated revenue of AED1.63bn ($443.78m) in the three months ending June 30 from the sale of apartment blocks, commercial units and land, a detailed earnings statement released on Monday showed.

Revenue in the same period a year earlier was AED815.6m. The increase easily offset a small drop in revenue from villa sales.

Emaar reported a 10 percent increase in second-quarter net profit in July.

Cost of revenue from property sales shot up to AED1.1bn from AED433.5m in the prior-year period, the latest earnings report stated.

Revenue from Emaar's growing hospitality business rose to AED354.3m from AED316.6m.