Strong sales, stable market lift Damac profit to Dh880M

dubai — Damac Properties Dubai has reported that the company has recorded revenues of Dh1.95 billion, with gross profit margins at 54 per cent, during the first three months of 2017.

Net profit for the reporting period stood at Dh880 million, achieving net margins of 45 per cent. Total assets increased by 6.3 per cent to Dh26.17 billion compared to Dh24.63 billion at yearend 2016.

As of March 31, 2017, cash and bank balances stood at Dh9.11 billion; development properties stood at Dh10.22 billion largely unchanged versus December 2016. Total equity stood at Dh13.5 billion which is an increase of seven per cent from the year end 2016. Earnings per share for the quarter amounted to Dh0.15 per share. Damac completed a further 550 units in its Damac Hills master development, which represent around 20 per cent of teh full year 2017 guidance of 2,800 units.

During the quarter, booked sales

There is continued demand for quality real estate that presents better value Hussain Sajwani, Chairman of Damac Properties

reached Dh2.2 billion, compared to Dh1.71 billion in the fourth quarter of 2016 and Dh2 billion in the same period last year, demonstrating a sequential increase and a stable market in general and is consistent with earlier guidance of Dh7 billion for the year 2017.

Hussain Sajwani, chairman of Damac Properties, noted that the Dubai real estate market has stabilised, and that this was especially visible in the last few months of 2016. “With no major fluctuations in prices but with an increase in volumes and transactions in the market in general, we can say that the first quarter of 2017 has been strong, with booked sales of Dh2.2 billion. There is continued demand for quality real estate that presents better value. Despite the challenging market conditions, our medium to long term outlook remains positive, as we remain dynamic and continue providing the right products that suit the changing market needs,” he said.

Damac also expects around 11,000 to 12,000 residential properties to hit the Dubai market in 2017, a steady increase compared to the average over the last two years, the group’s chief finance officer said. Supply of such properties in 2017 would not be far off demand, reflecting a move towards stability, Adil Taqi said. “The real estate market in its entirety has turned a corner,” Taqi told Reuters on Monday.

With inputs from Reuters — business@khaleejtimes.com