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Damac Properties targets sales in excess of Dh7 billion in 2016

dubai - Developer aims to deliver between 2,700 to 3,000 units after handing over 494 units in H1

Damac Properties on Sunday declared a net profit of Dh1.94 billion and revenues at Dh3.37 billion for the first half of the year. Its chairman said the company is more optimistic for the second half of 2016.

The Dubai-listed company's net profit dropped by 27 per cent in the first half of 2016 compared to the same period in 2015. Its second-quarter net profit also fell to Dh886.8 million, showing a 37.4 per cent decline.

Its total assets increased to Dh23.51 billion at June 30, 2016, compared to Dh23.45 billion at December 31, 2015. Cash and bank balances stood at Dh8.81 billion while development properties were recorded at Dh9.59 billion as at June 30, 2016.

The management maintains unit delivery guidance for 2016 in the range of 2,700 to 3,000 units. In the first half, 494 units were delivered in Dubai and Beirut.

During the period, booked sales reached Dh3.63 billion, marginally below the previous three quarters' run rate, primarily due to the impact of Ramadan.

The higher transaction numbers and square footage sales show demand for Damac's products and the Dubai market. With these results and a stronger-than-seasonal start to Q3 2016, the management said full year sales would be greater than Dh7 billion.

Damac Properties chairman Hussain Sajwani said: "The Dubai market remains solid. The levels of interest in our new product launches and existing portfolio are healthy. Dubai is reinforcing its position as a leading metropolitan centre attracting businesses and individual investors from the four corners of the globe."

In the first half of 2016, Damac added Aykon City on Shaikh Zayed Road to its portfolio of projects. It is a four million square foot development comprising six towers overlooking the Dubai Canal.

"We believe that Dubai is well-positioned for continued growth and we expect the city to consistently outperform more established metropolitan centres. This outperformance is underpinned by a stringent and efficient regulatory framework stemming from the government's vision to create a sustainable city which enhances the experience of those living, working and visiting Dubai," Sajwani added.

Damac also announced the launch of a 60-storey residential tower within Aykon City following the first quarter launch of a hotel and serviced apartments. The residential tower represents one of the few opportunities to own a luxury residence overlooking the Dubai Canal.

Following a sold-out phase one, Damac announced a limited release in Ghalia during the Holy Month of Ramadan to target the growing halal tourism sector. Ghalia offers the first certified Shariah-compliant serviced hotel apartments, with construction already under way, and will be operated by Damac Hotels & Resorts, the hospitality arm of Damac Properties. The 38-storey tower in Jumeirah Village will comprise 742 keys, with furnished units ranging from studio, one-, two- and three-bedroom apartments.

Also, in the heart of Akoya Oxygen, Damac has launched a collection of hotel spa villas. The limited edition villas come with a private garden spa as standard, providing a choice of jacuzzi or sauna.

- abdulbasit@khaleejtimes.com