Dubai: Damac Properties reported full-year losses of Dh1.04 billion from Dh37 million incurred a year before.
The firm blamed the spike in losses on the lasting effects of coronavirus that squeezed profit margins, adding that with global lockdowns and travel restrictions, Dubai's property market has been adversely impacted.
Damac, one of Dubai's largest developers, said it will take at least one to two years for the real estate market in the United Arab Emirates 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.
Damac shares slumped as much as 4.8 per cent, the most in about two months, to trade at Dh1.20. It was the biggest drag to Dubai's DFM General Index, down 0.1 per cent.