Dubai’s Emaar second-qtr net up 29 pct despite dip in local home sales
Company's revenue for the quarter dropped to 2.81 billion dirhams from 3.11 billion
August 4, 2014 5:14 by Reuters
The builder of the world’s tallest tower Burj Khalifa made a net profit of 868 million dirhams ($236.3 million) in the three months ending June 30, compared with 675 million a year before, it said in a statement to Dubai‘s bourse.
The outcome beat an average forecast of 839.8 million dirhams for the period.
However, renewed speculative buying and new project announcements have pushed up prices, making them unaffordable to many and thus slowing sales, raising fears of another property market bubble.
Property consultant JLL said in its latest report that there had been a marked slowdown in the volume of residential sales in Dubai in the second quarter.
The company’s revenue for the quarter dropped to 2.81 billion dirhams from 3.11 billion, the statement said. But revenue from its malls, retail and hospitality business grew by 12 percent.
Shares of Emaar ended 3 percent up, before the announcement of the results.
($1 = 3.6730 United Arab Emirates Dirhams) (Reporting by Praveen Menon; Editing by David French and David Holmes)