Damac records Dh3.5b in H1, 2017 revenues
The property market in Dubai continues to demonstrate further stabilisation, says Hussain Sajwani, chairman of Damac Properties.
Published: Mon 14 Aug 2017, 1:18 PM
Last updated: Mon 14 Aug 2017, 7:13 PM
Damac Properties has reported a total revenue of Dh3.5 billion for the first half of 2017, a slight increase over the Dh3.4 billion recorded over the same period last year.
The company's net profit stood at Dh1.6 billion for the first half of 2017. As of June 30, 2017, Damac's booked sales for H1 stood at Dh4 billion, and delivered 1,071 units in Damac Hills, Dubai. Total cash and bank balances stood at Dh8.6 billion, while earnings per share for H1 came to Dh0.26. Gross debt stood at Dh5.4 billion.
"We are pleased with the increase in sales in H1, 2017 versus same period last year, as we continue to be in line with guidance. This is a reflection of the real estate market as it continues to stabilise, whereby the population growth still underpins strategic demand. Dubai continues to be a hugely attractive market for investors and end users," said Adil Taqi, CFO at Damac Properties.
During the first six months of 2016, Damac's net profit for the reporting period stood at Dh1.9 billion, while booked sales during the period reached Dh3.6 billion.
"Our medium to long term outlook remains positive as Damac continues to develop innovative products that appeal to both end users and investors," said Hussain Sajwani, chairman of Damac Properties. "Damac's strong H1 sales performance can be attributed to continued demand for a number of our projects including Aykon City, Damac Hills and Akoya Oxygen."
Sajwani added that the city continues to show economic growth in spite of the turbulence seen in 2016 with the drop in oil prices and sluggish global trade. He attributed the success to "Dubai's visionary leadership" and the government's successful efforts in attracting investors and visitors.
"GDP growth continues to remain positive at 2.85 per cent in 2016 and Dubai remains one of the most popular destinations for global travellers, attracting over eight million visitors in H1 2017, compared to 7.3 million for the same period last year, according to DTCM," said Sajwani. "This growth also reflects on Dubai's real estate sector which according the Dubai Land Department, saw property transactions in H1 2017 of Dh132 billion, a sizable gain over Dh113 billion during H1 2016. We are optimistic that the sector will continue to sustain this growth through the remainder of the year."
An additional 1,071 units were delivered at its Damac Hills master development in H1 2017, bringing the total number of delivered units there to over 3,100. In February, Damac celebrated its flagship golf development with the opening of the Trump International Golf Club Dubai, the first of its kind in the Middle East, offering world-class golfing on an 18-hole championship course and exquisite leisure, dining and entertainment experiences.
Construction continues on circa 5,000 villas at its Akoya Oxygen master community in Dubailand, with a further 1,300 villas scheduled to begin construction in September 2017. Akoya Oxygen includes contemporary residential properties of various sizes surrounding an 18-hole championship golf course, along with an organic produce market, hydroponic café, luxury wellness centre, outdoor yoga enclave and retail outlets featuring well-known brands.
Construction is almost complete on the Damac Towers by Paramount Hotels & Resorts, a four-tower, 250-meter high development consisting over 2,000 units, and includes a luxury hotel and serviced branded residences in Business Bay. Progress on Damac Heights, an 86-floor tower with uninterrupted views of the sea and Palm Jumeirah is also nearing completion.