An increase in net profit reported by two of Dubai’s largest property developers for Q4 of 2016 has raised hopes of a market recovery in 2017
- Two of Dubai’s largest property developers reported an increase in net profit for the fourth quarter of 2016
- Emmar Properties reported net profit growth of 56% for the final three months of the year
- Property brokers are now forecasting an increase in property prices after a two-year period of decline
Growth within Dubai’s property market looks to be more pronounced in 2017 after two of the Emirates largest property developers, Emaar Properties and Damac Properties reported a net profit increase in Q4 of 2016,
Emmar reported net profit growth of 56% for the final three months of the year, climbing to AED1.61bn, up from AED1.03bn during the same period a year earlier, surpassing estimates by Sico Bahrain of AED1.32bn.
Selling AED14.4bn worth of real estate during 2016, 41% more than the previous year, Emaar’s revenue for the Q4 also increased, rising by 16% to AED4.4bn.
Dubai’s second largest listed developer, Damac Properties, also reported a slight increase in net profit, despite “challenging market conditions”. While they did not provide a quarterly breakdown, results based on previous data supplied by the company reveals a net profit of AED854.6 million – a 1.3% increase on the previous year’s profit of AED842.8m.
The news comes as Asteco became the latest property broker to forecast an increase in average house prices this year after two years of decline.
Mohammad Kamal, Executive Director for Equity Research at Arqaam Capital, commented: “The Dubai real estate market in 2016 had stabilised over 2015, with no major fluctuations in prices. There is demand for quality real estate but with the challenging market conditions we are operating in, what has changed is customers are seeking better value. Our medium to long-term outlook remains positive and we are well positioned to accommodate and navigate these conditions.”