Emaar reported a 4.7 per cent drop in third-quarter revenue in October. (Gulfpics)
Emaar Properties’, revenue from apartments sales more than tripled in the third quarter, helping Dubai’s largest developer overcome a sharp decline in the sale of commercial units.
Revenue from sales of condominiums in the third-quarter more than tripled to Dhs567 million ($154.4 million) from Dhs183 million in the same period in 2011, a detailed earnings statement released on Sunday showed. However, revenue from sale of villas dropped slightly to Dhs123 million from Dhs126 million a year-ago.
Income from sale of commercial properties and plot sales took a major hit, generating only Dhs109 million compared with Dhs798.4 million in the prior-year period.
Emaar is one of the better performers among property companies in Dubai as the sector recovers from a roughly 60 per cent drop in real estate prices from their peak in 2008.
The builder of the world’s tallest tower, reported a 4.7 per cent drop in third-quarter revenue in October, missing analyst’s forecasts.
Emaar launched three new real estate projects this year, with residential units generating strong interest.
The report also showed that Emaar is owed Dhs242 million by troubled mortgage affiliate Amlak, down from Dhs595 million in 2011.
This amount earns an average interest of 1.45 per cent per annum compared with 3.13 per cent to four per cent last year, Emaar said.