Damac Properties reports 15% drop in Q1 profit on lower revenues

Damac Properties reports 15% drop in Q1 profit on lower revenues

Dubai’s Damac Properties reported a 15 percent fall in first-quarter net profit on Monday as revenue dropped.

The developer reported a net profit of 1.05 billion dirhams ($285.9 million) for the three months to Mar. 31, according to a statement to Dubai’s bourse. This was up from 1.23 billion dirhams a year earlier.

Damac’s first-quarter revenue was 1.62 billion dirhams. This compares with 2.43 billion dirhams a year earlier.

The luxury property developer said it expects to deliver between 2,700 to 3,000 units across its portfolio during 2016. Damac delivered 306 units in the Damac Maison Royale The Distinction project in Business Bay during Q1.

Sales during Q1 reached 2bn dirhams ($545m), in line with the previous quarter, which Hussain Sajwani, chairman of Damac, said was proof that the property market in Dubai was “solid”.

“The Dubai market is defying the sceptics,” Sajwani said. “The levels of interest, activity, transaction values and volumes are solid.”

Sajwani said Dubai’s property market will continue to outperform other established cities around the world.

“We believe Dubai is well set for continued growth, and we expect the city will consistently outperform more established metropolitan centres around the world,” he said.

“This outperformance is underpinned by a stringent and efficient regulatory framework which supports the [Dubai] government’s vision to create a sustainable city which enhances the experience for those living, working and visiting Dubai.”

Damac launched Aykon City during the first quarter, a four-million-square-foot development comprised of six towers, located on Sheikh Zayed Road and overlooking the Dubai Canal.

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