{"id":4452,"date":"2016-02-12T02:02:01","date_gmt":"2016-02-11T19:02:01","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=4452"},"modified":"2016-02-11T23:34:44","modified_gmt":"2016-02-11T16:34:44","slug":"tough-time-ahead-for-dubai-developer-damac-as-profit-falls","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/tough-time-ahead-for-dubai-developer-damac-as-profit-falls\/","title":{"rendered":"Tough time ahead for Dubai developer Damac as profit falls"},"content":{"rendered":"


\n
\nDamac warned that it was facing a “challenging competitive environment” after the Dubai developer posted an 8 per cent drop in fourth-quarter profit.In its full-year results for 2015, Damac said that market conditions in Dubai had cooled significantly since the previous year as profit for the three months to the end of December fell to Dh842.8 million from Dh916.3m a year earlier.Damac said that it had booked nearly Dh500m in penalties from customers who in the years since the global financial crisis had walked away from their off-plan home purchases – a more than 20-fold increase on a year earlier. Hussain Sajwani, Damac’s chairman, told investors that tough conditions create opportunities for developers.
\n“The Dubai real estate market is at a consolidation point in the cycle and the rapid growth witnessed in 2012-2014 is now behind us,” Mr Sajwani said. “However, this market creates opportunities for well-capitalised and experienced companies like ourselves with a strong track record.”Damac said that the results included a provision in the 2014 figures of Dh155.6m and that underlying profit was actually up 10 per cent. Revenue for the quarter increased 6.2 per cent to Dh1.7 billion from Dh1.6bn the previous year, Damac reported yesterday.
\nThe company reported that its profits had been boosted by income it booked from cancelled sales, which rose to Dh480m, up from Dh22m the previous year. Damac said that the cancellations related to customer advances that had been retained after the global financial crisis and that were only now being shown on its balance sheet.Damac, like other developers in Dubai, has been hit by falling oil prices and a strengthening of the dirham, which have led to a property slowdown in its home city where 92 per cent of its developments are located.
\nThe company reported that the value of the homes it had sold to investors during the fourth quarter of last year fell to Dh2bn, down from Dh2.7bn a year earlier.”The way we look at the oil price is that, yes, it’s a challenge but it’s also an opportunity at the same time,” said Hazem Abdallah, the vice president for investor relations. “For every guy who feels a little bit poorer because of the oil price there’s a guy who feels a little bit richer.”
\nAnnual profit at Damac increased by 40.6 per cent to Dh4.5bn from Dh3.2bn a year earlier, while revenue for the full year more than doubled to Dh8.5bn from Dh3.7bn a year earlier. One of its most high-profile Dubai developments is built around a golf course designed by Donald Trump’s Trump Organisation. Damac said that it had seen “no noticeable effect” on sales after the US presidential candidate went on an anti-Muslim tirade.
\nDamac shares fell by 4.2 per cent in Dubai trading yesterday to close at Dh2.49.”On the face of it these figures look very good but if you dig a little deeper it becomes clear that Damac, like other housebuilders, is started to be affected by the slowdown,” said Tariq Qaqish, the deputy head of asset management at Al Mal Capital.”The economy of the UAE is built on oil revenue and in Dubai, real estate is a massive contributor to GDP. Damac will definitely be affected by these issues, probably even more so in 2016 than last year.”
\nlbarnard@thenational.ae
\n
\nSource : thenational.ae
\nRead more…Tough time ahead for Dubai developer Damac as profit falls<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Damac warned that it was facing a “challenging competitive environment” after the Dubai developer...<\/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-4452","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\/p75ss1-19O","jetpack-related-posts":[{"id":33346,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/damac-profit-slips-as-it-looks-ahead-to-stronger-performance-from-dubai-property-market\/","url_meta":{"origin":4452,"position":0},"title":"Damac profit slips as it looks ahead to stronger performance from Dubai property market","date":"November 7, 2016","format":false,"excerpt":"\r Damac Properties reported an 11.7 per cent fall in third quarter profits, as the developer's chairman acknowledged that 2016 would be remembered as \"the year of market turmoil and macroeconomic pressures\". Damac, the company behind Dubai's Akoya development, said its profit for the three months to the end of\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":12192,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/damac-properties-first-quarter-net-profit-drops-15-per-cent\/","url_meta":{"origin":4452,"position":1},"title":"Damac Properties first-quarter net profit drops 15 per cent","date":"May 9, 2016","format":false,"excerpt":"\r Dubai-based developer Damac Properties reported a 42 per cent decline in year-on-year sales for the first quarter of 2016 of Dh1.62 billion compared with Dh2.8bn a year earlier.Net profit also dropped by 15 per cent to Dh1.05bn.The amount of new sales booked during the quarter were Dh2bn - a\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":33350,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/damac-profit-slips-as-it-looks-ahead-to-stronger-performance-from-dubai-property-market-2\/","url_meta":{"origin":4452,"position":2},"title":"Damac profit slips as it looks ahead to stronger performance from Dubai property market","date":"November 7, 2016","format":false,"excerpt":"\r Damac Properties reported an 11.7 per cent fall in third quarter profits, as the developer's chairman acknowledged that 2016 would be remembered as \"the year of market turmoil and macroeconomic pressures\". Damac, the company behind Dubai's Akoya development, said its profit for the three months to the end of\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":103244,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/damac-chairman-calls-bottom-for-dubai-property-market-sees-value-in-brexit\/","url_meta":{"origin":4452,"position":3},"title":"DAMAC chairman calls bottom for Dubai property market, sees value in Brexit","date":"January 24, 2019","format":false,"excerpt":"\r A major Emirati property developer believes Dubai's property market has bottomed out \u2014 but says there remain at least two more tough years ahead before a full rebound.\r \r Source : cnbc.com\r Read more...DAMAC chairman calls bottom for Dubai property market, sees value in Brexit","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":128110,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-developer-damac-begins-handover-of-luxury-real-estate-project-nine-elms-in-london\/","url_meta":{"origin":4452,"position":4},"title":"Dubai developer Damac begins handover of luxury real estate project Nine Elms in London","date":"June 30, 2022","format":false,"excerpt":"\r Damac is \u201crapidly expanding our global footprint by looking at JV opportunities across the world,\" a senior executive said\r \r Source : arabianbusiness.com\r Read more...Dubai developer Damac begins handover of luxury real estate project Nine Elms in London","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2022\/06\/Damac-Nine-Elms-1-1000x667-1.jpg?fit=1000%2C667&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":54865,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/damac-positive-amid-tough-market\/","url_meta":{"origin":4452,"position":5},"title":"Damac positive amid tough market","date":"May 15, 2017","format":false,"excerpt":"\r Damac Properties yesterday reported a 16 per cent fall in first-quarter net profit, missing analysts' forecasts, because of lower property development revenue and a sharp drop in income from the cancellation of units. The Dubai-based developer of Damac Hills and Aykon City posted a net income of Dh880 million,\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\/4452"}],"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=4452"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/4452\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=4452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=4452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=4452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}