LONDON: Dubai developer Damac Properties recorded a 25 percent drop in profit last year amid a regional real estate slump.
The real-estate company behind the Trump International Golf Club in Dubai suffered from the rising cost of sales and a decline in margin for international projects following a tricky period for the sector.
In a statement published on the Dubai Financial Market website, the company said full-year net profit fell from 3.69 billion dirhams ($1 billion) in 2016 to 2.76 billion dirhams last year. However revenues rose by 4 percent during the same period, from7.16 billion dirhams to 7.45 billion dirhams.
The report follows a turbulent year for the Dubai property market, with a drop in demand dampening prices amid increased supply as a series of new developments came onto the market.
But the developer remains upbeat, reporting a rise in booked sales, which stood at 7.5 billion dirhams at the end of December compared to 7 billion dirhams in the previous year.
“Dubai’s property market continues to show growth as increasing demand returns to the market, and this is reflected in our booked sales. Our medium to long-term outlook remains positive, with continued local demand as well and stronger interest by international investors,” said Hussain Sajwani, chairman of Damac Properties.
He added that the emirate’s property sector was “feeling the positive effects of the emirate’s appeal and growing sophistication on the world stage. This is evident from the growing real estate sales transactions at Dubai Land Department and we are confident of the growth prospects for the sector going forward.”
So far this year, Damac has delivered 2,304 units, taking its total to 20,236 units to date. Recent completions include new units in Damac Hills, a luxury residential community in Dubai built around the Trump International Golf Club.
Construction is underway on more than 6,500 units at AKOYA Oxygen, a tree-filled community living space designed to promote living in harmony with nature. The development includes The Rainforest at AKOYA Oxygen.
The company also delivered units at new developments abroad, including its two-tower project in Saudi Arabia Damac Esclusiva and The Heights in Jordan.
Damac continued to expand its interests locally and overseas in 2017, activating 226 new brokers and conducting 524 roadshows across 42 countries.
“Our major projects in Dubai including DAMAC Hills, AKOYA Oxygen and AYKON City continue to appeal to expats and international investors alike, while our diverse product portfolio continues to attract a wide variety of buyers for our off-plan and ready properties,” Sajwani said.
Damac profits take a tumble in 2017 as cost of sales rises
Damac profits take a tumble in 2017 as cost of sales rises
Real Estate Registry signs 10 agreements at forum in Riyadh
RIYADH: The Real Estate Registry concluded its participation in the Real Estate Future 2026, as a partner of the forum, with a distinguished presence that included the launch of its business portal, the signing of 10 agreements and memoranda of understanding with entities from the public and private sectors, the organization of specialized workshops, and the awarding of the Gold Award at the Real Estate Excellence Awards.
During his participation in the forum, the CEO of the firm, Mohammed Al-Sulaiman, reviewed the latest developments in real estate registration in the Kingdom in a keynote speech, highlighting the pivotal role of the Real Estate Registry in building a unified and reliable system for data. He also announced the launch of the national blockchain infrastructure, which aims to enable the microcoding of real estate assets, enhance transparency, expand investment opportunities, and support innovative ownership models within a reliable regulatory framework.
On the sidelines of the forum, Al-Sulaiman met with Nigeria’s Minister of Housing and Urban Development, Ahmed Dangiwa. During the meeting, they discussed areas of joint cooperation, exchanged experiences and advice on shaping the future of the real estate sector, and reviewed best practices in implementing real estate registration systems that enhance reliability and improve the efficiency of property registration.
efficiency of property registration systems.
The Real Estate Registry’s participation included organizing three specialized workshops that focused on the role of geospatial technologies in identifying ownership, enhancing transparency, and improving the quality of real estate data.
The workshop “Empowering the Real Estate Registry for the Business Sector” reviewed digital solutions that enable the business sector to manage its real estate assets more efficiently and enhance governance and technical integration. The workshop “From Off-Plan Sales to Title Deed” focused on the journey of documenting real estate ownership and the role of the registry in linking the stages of development and documentation within an integrated digital system.
On the sidelines of the forum, the Real Estate Registry signed 10 agreements and memorandums of understanding, including a deal with Yasmina Information Technology Co. to utilize real estate data in developing smarter insurance solutions that support the real estate sector and enhance service reliability.
Partnerships were also signed with Haseel, NewTech, and Sahl, as well as HissaTech and Droub, to develop innovative digital solutions in property ownership, fractional ownership, and asset tokenization, as well as real estate finance and investment within a trusted regulatory framework.
Further collaborations included an MoU with ROSHN Group, an agreement with the Saudi Water Authority to enable data integration and quality enhancement, an agreement with the Saudi National Bank, and a partnership with Saudi Post to link the national address with the property registry as a unified geospatial identifier supporting data accuracy and integration.
The registry’s participation was crowned with the Golden Award at the Real Estate Excellence Awards in the category of Excellence in Property Documentation, in recognition of its role in building a model based on transparency, accuracy, and speed, as well as advanced digital technologies and specialized legal expertise, contributing to rights protection and increasing the sector’s attractiveness.
The Real Estate Registry emphasized that its participation reflects its continued role as a key enabler of the real estate sector, a trusted data source, and an active partner in driving digital transformation, enhancing market efficiency, and building investor and financier confidence, in line with Saudi Arabia’s Vision 2030 objectives for a fully integrated and sustainable digital real estate ecosystem.
