Dubai’s Damac reports 45% Q1 profit dip amid weak property market
The results came as Dubai is under pressure due to lower property prices and subdued sales
Dubai’s Damac Properties , owner and operator of the only Trump-branded golf club in the Middle East, posted a 45 per cent drop in first-quarter profit from a year earlier although profit rose marginally from the previous quarter.
The results came as Dubai, its core real-estate market, is under pressure due to lower property prices and subdued sales as new developments hit the market.
Read: Dubai property rents down up to 5% in Q1, similar slump expected in Q2
DAMAC’s net profit was Dhs484m ($132m), down from Dhs880m a year earlier, it said in a statement.
Arqaam Capital had forecast a net profit of Dhs635m and EFG Hermes’ projection was Dhs610m for first-quarter net profit.
Read: Dubai real estate slump to continue for another two years – S&P
DAMAC’s net profit, however, was above its fourth-quarter profit of Dhs459m, the company said.
Read: Dubai property firm Damac sees Q4 profit dip 47%
Residential property prices in Dubai registered a 12-month decline of 2 per cent on average, while rents declined by up to 5 per cent in some areas, according to real estate consultancy Cavendish Maxwell.
