Property in Dubai
Leading Dubai property developers records decline in profits
Largest Dubai-based developer, Emaar Properties have reported a 73 percent decline in first quarter year-on-year profits, with a net profit of only Dh237mn achieved during the first quarter of this year, as against the Dh896mn achieved during first quarter of 2008.
The total revenues of the company also dipped, touching Dh.1.55bn during the first quarter of this year, compared to Dh.2.52bn managed during the first quarter of 2008, thereby marking a decline of 39 percent.
The decrease in profits and revenues, are believed to be due to lower deliveries and sales of completed units.
Meanwhile, the developer of The Palm Jumeirah, Nakheel, announced a drop by as much as 90 percent, on the full year profit, as the company made Dh.4.8bn as “impairment charges”.
This announcement by Nakheel, follows the report by Emaar. Nakheel has told its shareholders that no dividend would be paid for last year, owing to financial crisis, and more than 80 percent of shareholders are said to have approved it.
The property sector in Dubai is now undergoing a difficult phase, after the prices of real estate peaked in 2008, before the global economic recession made its presence felt in the region.
Posted on 1/5/2009