Union Properties said on Monday its first quarter profit jumped 64 per cent, as revenues of the Dubai-based developer increased with handover of some of its properties.

The third largest developer in Dubai made a net profit of Dh82 million ($22.32 million) compared with a profit of Dh50 million in the year-before period, it said in a statement to the Dubai bourse.

The developer said the jump in profits was primarily due to ongoing handover of the properties at Index Tower and Limestone House in Dubai International Financial Centre.

It said it booked provisions worth Dh65 million for loss on valuation of some properties.

Revenue for the three months to March 31 was Dh1.48 billion, up 75 per cent from Dh846 million in the same period in 2010.

The once-booming property market in Dubai was hit hard by the economic crises, causing a collapse of the real estate market in the emirate.

House prices in Dubai are set to drop another 10 per cent before they stabilise, as new units are released onto a market awash with supply, a Reuters house poll showed.

Union Properties finalised the sale of its Ritz Carlton hotel in Dubai for Dh1.1 billion in November last year. It used the proceeds to reduce debt and complete remaining projects.

The developer's shares closed 2.3 per cent higher on the Dubai bourse before the results were announced.-Reuters