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Dubai’s largest developer beats estimates

Person 4 Mohammad AlAlabbar

To date, Emaar has handed over 36,600 units including some 20,900 apartments and around 15,700 villas.

July 30, 2013 10:08 by

Dubai’s Emaar Properties beat estimates with a 10 per cent increase in second-quarter net profit, driven by a pick-up in property sales in the emirate after several years of a slump in the market.

Dubai’s largest developer – builder of the world’s tallest tower, the Burj Khalifa – has sold a series of new projects this year.

It reported a net profit of AED675 million for the second quarter, higher than the AED614 million it posted in the same period in 2012, it said in a statement to the Dubai stock market.

A Reuters poll of five analysts had predicted an average net profit of AED563.4 million.

Revenue for the quarter was AED3.1 billion, up 48 per cent from AED2.1 billion in the same period last year.

The developer, which has announced several new projects this year, said total sales of real estate in Dubai for the first half of the year was AED6.3 billion, four times the figure during the same period in 2012.

To date, Emaar has handed over 36,600 units including some 20,900 apartments and around 15,700 villas.

Dubai’s real estate market, which has rebounded from a 50 per cent drop in home sales prices after the 2008 financial crisis, has seen average residential rentals grow by over 30 per cent over the past 12 months, consultancy CBRE said in a report on Monday.

However, the report warned that Dubai’s residential sector was showing increasing signs of overheating with lease and sale rates rising far too quickly to be justified by the current economic environment.

Emaar, which has gradually branched out of the home sales business, said revenue from its hospitality, leisure and malls businesses was AED2.326 billion, 45 per cent of total revenue.

Shares in the developer have benefited from Dubai’s real estate recovery, rising 52.8 per cent this year. On Monday, it closed 0.2 percent up on Dubai’s bourse, before the announcement of earnings.


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