Dubai’s largest listed developer Emaar Properties’ second-quarter profit fell 7.4 per cent as the Middle East financial hub’s property market continues to cool.
The emirate’s oversupplied residential real estate market, down by at least a quarter since the middle of 2014, is showing no signs of a recovery.
Emaar made a net profit of Dhs1.37bn ($373m) in the April-June period, according to Reuters calculations based on a company bourse statement on Sunday, compared to Dhs1.48bn in the 2018 second quarter.
EFG Hermes estimated Emaar would make Dhs1.55bn in net profit.
Second-quarter revenue contracted 3.6 per cent to Dhs5.68bn, Reuters calculated.
The developer of the world’s tallest tower, Dubai’s Burj Khalifa, said half-year profit fell 4 per cent to Dhs3.1bn, the company said, and half-year revenue declined 4 per cent to Dhs11.57bn.
Half-year sales rose 52 per cent to Dhs9.4bn.
“The sales figures correspond to the residential units sold by Emaar during the first half of the year which underline the strong fundamentals for future revenue recognition,” the company said in an email.
“Revenue and profit on property development is recognised based on the incremental construction progress achieved on such projects subsequent to sales achieved.”
Total sales backlog was Dhs49.2bn as on June 30, which Emaar said would be recognised as revenue within the next three to four years.