UAE property market will take about two years to recover – Damac boss

Damac Properties, one of Dubai’s largest developers, said it will take at least one to two years for the real estate market in the UAE to get out of its downturn.

“I anticipate it will take at least 12 to 24 months to see a substantial recovery,” chairman Hussain Sajwani said in a statement after Damac posted its second consecutive full-year loss.

“2020 was a very tough year for all property developers in the United Arab Emirates and Damac felt the negative impact just the same,” he said.

The coronavirus pandemic has aggravated a property slump in Dubai, where oversupply and economic uncertainty has pushed down prices for years. The government last year set up a committee to manage supply and demand, while property developers temporarily halted new projects.

Also read: Real estate: New Dubai law issued for cancelled and unfinished projects

Damac FY Numbers:

Loss: Dhs1.04bn vs loss of Dhs37m (Estimated loss of Dhs904m)

Revenue: Dhs4.67bn vs Dhs4.4bn (Estimated drop of Dhs4.43bn)

Gross debt: Dhs3.2bn

Cash and bank balances: Dhs4.2bn