Dubai developer says residential boom helps overcome sharp decline in commercial sales
Emaar Properties' revenue from apartments sales more than tripled in the third quarter, helping Dubai's largest developer overcome a sharp decline in the sale of commercial units.
Revenue from sales of condominiums in the third-quarter more than tripled to AED567m ($154.4m) from AED183m in the same period in 2011, a detailed earnings statement released on Sunday showed. However, revenue from sale of villas dropped slightly to AED123m from AED126m a year-ago.
Income from sale of commercial properties and plot sales took a major hit, generating only AED109m compared with AED798.4m in the prior-year period.
Emaar is one of the better performers among property companies in Dubai as the sector recovers from a roughly 60 percent drop in real estate prices from their peak in 2008.
The builder of the world's tallest tower, reported a 4.7 percent drop in third-quarter revenue in October, missing analyst's forecasts.
Emaar launched three new real estate projects this year, with residential units generating strong interest.
The report also showed that Emaar is owed AED242m by troubled mortgage affiliate Amlak, down from AED595m in 2011.
This amount earns an average interest of 1.45 percent per annum compared with 3.13 percent to 4 percent last year, Emaar said.