{"id":44123,"date":"2017-02-15T01:32:59","date_gmt":"2017-02-14T18:32:59","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=44123"},"modified":"2017-02-14T22:50:57","modified_gmt":"2017-02-14T15:50:57","slug":"signs-of-momentum-for-dubai-property-sector","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/signs-of-momentum-for-dubai-property-sector\/","title":{"rendered":"Signs of momentum for Dubai property sector"},"content":{"rendered":"


\nTwo of Dubai’s largest property developers reported on Tuesday a boost in fourth-quarter net profit, prompting further hopes of a Dubai market recovery.Burj Khalifa developer Emaar Properties said net profit for the three months to the end of December 2016 increased by 56 per cent, climbing to Dh1.61 billion from Dh1.03bn during the same period a year earlier. The Q4 result beat estimates by Sico Bahrain of Dh1.32bn but missed a forecast by the Egyptian investment bank EFG Hermes of Dh1.63bn, according to Reuters.Emaar said the quarter’s revenue increased by 16 per cent to Dh4.4bn, up from Dh3.8bn for the same period a year earlier with a rise in the contribution from the company’s real estate division as well as those from its hospitality and retail sectors.Emaar’s fourth-quarter profit was skewed by its reversal of a provision made in its 2015 accounts against damage at its The Address Downtown hotel following a dramatic fire at the property on New Year’s Eve 2015. Earlier this month Emaar said that the Dh301m provision, which had been made in its fourth-quarter 2015 accounts, would be reversed and recorded as income in 2016’s final quarter.Emaar sold Dh14.4 billion worth of real estate during 2016 – 41 per cent more than it had sold during the previous year.Dubai’s second-largest listed developer, Damac Properties, also reported a slight increase in fourth-quarter net profit despite what it described as “challenging market conditions”.Damac did not provide a quarterly breakdown for its results but based on sums using previous data provided by the company, fourth-quarter net profit stood at Dh854.6 million – a 1.3 per cent increase on the previous year’s profit of Dh842.8m. The fourth-quarter result missed estimates by EFG Hermes, which forecast a net profit of Dh745m, according to Reuters. “Although both developers announced an uptick in final quarter net profits, it would be somewhat inaccurate to generalise,” said Mohammad Kamal, the executive director for equity research at Arqaam Capital.”Damac produced significant growth in land sales revenues in Q4 as compared to last year and this was the primary driver of growth. Growth at Emaar, on the other hand, was a function of a strengthening in execution in property developments and the reversal of Dh301m in losses that were booked on The Address hotel last year.”While Emaar was able to report a 28 per cent total net profit increase for 2016 at Dh5.23bn, Damac said that its net profit for the full year had slumped by 18.1 per cent to Dh3.69bn.”The Dubai real estate market in 2016 had stabilised over 2015, with no major fluctuations in prices,” said Hussain Sajwani, Damac’s chairman. “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.”Emaar said that recurring revenues from its shopping malls, hospitality, entertainment and leisure businesses for 2016 was Dh5.97bn, similar to 2015, despite redevelopment at The Address Downtown Dubai. It said the recurring revenue businesses now account for 38 per cent of the total group revenue.Damac reported that it had handed over nearly half of the total number of properties it delivered in 2016 in the final quarter of the year, again skewing its results as it completed 600 hospitality units in Damac Maison Royale The Distinction and Damac Maison Bay’s Edge.The news comes as some property brokers are starting to forecast the bottom of the current Dubai housing market cycle.Earlier this week Asteco became the latest property broker to forecast an increase in average house prices this year after two years of declines.It calculated that average sales prices increased in Business Bay, DIFC and International City during the final three months of 2016 even though they fell in Downtown Dubai, Dubai Marina and JBR.Other brokers continue to forecast price falls for the remainder of 2016, with Phidar Advisory and Cluttons predicting further gradual softening.”The residential market in the UAE remains soft in the near term, and Emaar’s numbers stand out given the strength and consistency in their sales uptake numbers,” said Mr Kamal.__________________________________Earnings reports\u25a0 ADIB fourth-quarter profit lower on bad debt provisioning\u25a0 Aldar fourth-quarter profit dips 1 per cent amid ‘softer operating market’\u25a0 Quarterly profit slips 9% for Amanat Holdings\u25a0 Arkan Building Materials annual profit declines 25%\u25a0 Damac Properties’ fourth-quarter net profit rises 1.3%\u25a0 Drake & Scull’s 2016 net loss narrows to Dh787 million\u25a0 Du fails to offset royalty payment rise as profit falls\u25a0 Emaar Properties fourth-quarter net profit up 56%\u25a0 Etisalat profit edges up on growing UAE revenue\u25a0 Manazel Real Estate profit rises 16% in second half\u25a0 Marka will continue with cost-cutting after second straight annual loss\u25a0 Union National Bank’s fourth-quarter profit rises 29%, missing forecasts__________________________________lbarnard@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Signs of momentum for Dubai property sector<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Two of Dubai’s largest property developers reported on Tuesday a boost in fourth-quarter net profit,...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-44123","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-btF","jetpack-related-posts":[{"id":3313,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/union-properties-profit-plunges-in-dubai-slowdown\/","url_meta":{"origin":44123,"position":0},"title":"Union Properties profit plunges in Dubai slowdown","date":"February 1, 2016","format":false,"excerpt":"\r \r Profits at Union Properties, the Dubai developer behind Motor City and the Green Community, halved last year as the company was hit hard by a slowdown in the emirate's property market.Union Properties reported that net profit for the year sank to Dh434.6 million - down 49.7 per cent\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":42409,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/emaar-malls-profit-grows-by-13-per-cent-in-2016\/","url_meta":{"origin":44123,"position":1},"title":"Emaar Malls profit grows by 13 per cent in 2016","date":"January 31, 2017","format":false,"excerpt":"\r Emaar Malls, the company behind The Dubai Mall, said yesterday its fourth-quarter net profit rose 4 per cent, missing analysts' expectations, as visitor numbers remained flat last year.Net profit in the three months to December 31 rose to Dh452 million from Dh435m a year earlier, Emaar Malls said. Sico\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":33268,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/emaar-malls-reports-higher-profit-on-rental-income\/","url_meta":{"origin":44123,"position":2},"title":"Emaar Malls reports higher profit on rental income","date":"November 6, 2016","format":false,"excerpt":"\r Emaar Malls reported a 16 per cent rise in third-quarter net profit to Dh435 million as rental income increased.The shopping malls and retail business majority owned by global property developer Emaar Properties, said that rental income for the three months to the end of September 2016 increased 8 per\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11428,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/first-quarter-profit-rises-at-emirates-reit\/","url_meta":{"origin":44123,"position":3},"title":"First-quarter profit rises at Emirates Reit","date":"April 26, 2016","format":false,"excerpt":"\r First-quarter profit at the UAE's only quoted real estate investment trust, Emirates Reit, rose by more than half as the company netted rents from newly refurbished floors at Index Tower and its currently under-construction school in Akoya.In a company filing to Nasdaq Dubai, Emirates Reit reported that net profit\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":54735,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/emaar-residential-launches-lift-profit-amid-positive-economy\/","url_meta":{"origin":44123,"position":4},"title":"Emaar residential launches lift profit amid 'positive economy'","date":"May 14, 2017","format":false,"excerpt":"\r A spike in the value of sales of new residential property in Dubai helped lift first-quarter profit for developer Emaar amid what its chairman calls a positive economic environment in the emirate. The developer said that its preliminary net profit for the first three months was 15 per cent\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":42415,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/emaar-malls-quarterly-profit-edges-higher\/","url_meta":{"origin":44123,"position":5},"title":"Emaar Malls quarterly profit edges higher","date":"January 31, 2017","format":false,"excerpt":"\r Emaar Malls, the company behind The Dubai Mall, said yesterday its fourth-quarter net profit rose 4 per cent, missing analysts' expectations, as visitor numbers remained flat last year.Net profit in the three months to December 31 rose to Dh452 million from Dh435m a year earlier, Emaar Malls said. Sico\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/44123"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=44123"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/44123\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=44123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=44123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=44123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}