Dubai’s Nakheel, developer of the Palm Jumeirah, on Wednesday announced a 58 per cent year-on-year increase in net profit for the fourth quarter of 2017.
The profit rise to Dhs1.67bn ($454.6m) boosted Nakheel’s 2017 net profit, which increased 14 per cent to Dhs5.67bn ($1.54bn).
The company said its results highlighted the stability of the Dubai real estate sector and its diversification efforts into sectors including hospitality and retail.
Chestertons MENA said in a report this week that a trend of falling sales prices and rents seen in the Dubai residential property market was expected to continue following a surge in off-plan sales last year.
Nakheel handed over 1,439 land and built form units in 2017 , increasing its number of handovers since 2010 to 12,700.
“The company met its business and financial targets for the year and continued to support the local economy by awarding construction contracts worth almost Dhs8bn in 2017,” said chairman Ali Rashid Lootah.
The company had 4.6 million square feet of retail space in operation by year-end and said it expected the area to be a significant revenue generator in the years to come.
Similarly its hospitality business continued to grow, with two properties operational and several others under development, according to the announcement.
Nakheel’s revenue for the year was not disclosed.
The company is currently working on the massive Deira Islands project, a 15.3sqkm Dubai development that will eventually be home to 250,000 people across 16 residential towers.
Nakheel has awarded almost Dhs8bn ($2.1bn) of contracts across Deira Islands, which replaced plans for another palm-shaped island, to date including a Dhs385m ($104.8m) construction contract for an upcoming beachfront resort managed by Spain’s RIU Hotels and Resorts.