STOCK Damac properties
In the year-to-date, Damac delivered 1,870 homes, and booked sales of Dh1.6 billion Image Credit: Bloomberg

Dubai: Damac Properties has slipped into a Dh931 million loss for the first nine months, as Dubai's property market feels the full impact of the COVID-19 on demand. Last year, it had a profit of Dh132.6 million for this period.

“COVID-19 has upset the balance-sheets for many companies, which industry leaders have been very vocal and transparent about," said Hussain Sajwani, Chairman. "We continue to endure the effects of the global pandemic, which impacted the real estate industry. With social distancing becoming the norm, travel restrictions and a major dip in tourism, the market has been significantly impacted."

Damac, which delivered 1,870 homes in these nine months, had revenues of Dh3.7 billion against Dh2.8 billion a year before.

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Cash preservation

“Damac’s strong balance-sheet has allowed it to absorb much of the market shock and we are optimistic that Dubai Expo next year will reap positive rewards for the real estate industry as sales and transactions will increase, offsetting the dip in the market," the Chairman added.

Cash and bank balances were at Dh4.6 billion and the combined value of properties in the development mode were at Dh8.5 billion. The developer currently has debts of Dh3.3 billion.

Hussain Sajwani points the finger directly at COVID-19 for the disruption it brought about in Dubai's property market. Image Credit: Gulf News Archive

We are continuously striving to operate more efficiently, by cutting our receivables, optimising operational costs and focusing on cash collections

- Hussain Sajwani of Damac Properties