Dubai: Dubai-based commercial and residential developer Deyaar reported a net profit surge in third quarter profit on Monday amid renowned confidence in Dubai’s property market.
According to a Deyaar press release the developer recorded Dh40.5 million in the third quarter of 2013, significantly higher than the Dh5.1 million the company reported in the same 2012 period.
The company is performance in 2013 has outstripped recent years since the financial crisis. For the first nine months of 2013 Deyaar has recorded Dh87.1 million total net profit, which accumulates to 162 per cent growth when compared to the Dh33.2 recorded over the same 2012 period.
Net operating profits at the Dubai-based developer have also improved from Dh72.9 million in the first nine months of 2012 to Dh181.6 million for the same 2013 period.
“The real estate segment has been registering ongoing [sic] growth through each quarter this year. This sound financial performance is a testimony to the industry’s underlying resilience,” Saeed Al Qatami, Chief Executive Officer, Deyaar, stated.
Deyaar did not respond to request for further comment.
According to CBRE’s 2013 third quarter Dubai Office & Residential MarketView report the emergence of strong demand has accelerated rental growth among commercial properties in the central business district (CBD) area with average rates increase 7 per cent quarter on quarter.
But Dana Williamson, Head of Agency, Middle East North Africa (Mena) at Jones Lang LaSalle, said that residential and land sales were driving the market.
Residential rental property rates in Dubai have jumped by 23 per cent so far this year.
The main drivers is residential and land sales because in terms of commercial property in the office point there has only been some improvement, Williamson said.
However, Deyaar’s third quarter announcement affirms the bounce back the Dubai’s property market is witnessing.
“It indicates... that confidence is up and because confidence is generally is up you will see more transactions in land and residential sales,” Williamson said.