Dubai: Damac Properties recorded a sharp decline (46 per cent) in nine-month revenues to Dh2.8 billion from Dh5.2 billion. Net profit was down to Dh133 million from Dh1.1 billion a year ago, a drop of almost 88 per cent.
Booked sales remain healthy, at Dh2.4 billion, in a challenging environment for offplan sales. Last year, this was at Dh3.2 billion.
In a statement, Hussain Sajwani, Chairman of Damac, said: “We fully support the government’s focus on the need for stability and balance in the real estate market through the establishment of the Higher Committee for Real Estate Planning. I am confident that the economy will benefit from efficient urban planning as a result, and that the real estate sector will see real value addition from progressive steps such as these.”
In recent weeks, Sajwani had been vocal about the need to fix the “oversupply” situation in the Dubai property market. He had suggested a freeze on all offplan launches for a minimum of one to two years, during which time the market can rebalance demand and supply.
It is expected that the Higher Committee will soon start giving the general direction on finding solutions to some of the market issues.
Damac delivered 3,072 units in first nine months, which includes the first homes at the Akoya, its biggest project. It also completed other projects such as the Prive by DAMAC, Ghalia and Tower 108.
The developer keeps cutting into its debt obligations; it managed to remove Dh1.5 billion since September 2018 and bring the gross debt to Dh4 billion. Cash and bank balances were at Dh5 billion, while the value of development properties were Dh10 billion. Assets totalled Dh24.5 billion.