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Damac's nine-month profit surges 43pc to $1bn

DUBAI, November 10, 2015

Damac Properties, a leading developer of high-end property in the Middle East, said it has registered a net profit of Dh3.67 billion ($1 billion) in the first nine months, up 43 per cent over the same period last year.

Announcing the results for the period ending September 30, the luxury developer said it had recorded revenues of Dh6.77 billion ($1.84 billion) with its gross profit margin hitting 60.7 per cent.

The cash and bank balances stood at Dh9.87 billion ($2.68 billion) while the development properties was recorded at Dh7.74 billion, ($2.11 billion) as of September 30, it stated.

The net cash generated from operating activities for the period surged to Dh2.33 billion with the nine month EPS recorded at Dh0.61 per share.

Consistent with 2015 guidance, Damac said it expects to deliver 2,500 units across the portfolio this year.

The Dubai developer said during the nine-month period, its booked sales topped Dh7 billion ($1.91 billion), a proof of the demand for its projects from the investors. The company said it had sold a total area of 6.24 million sq ft, up 8.5 per cent over the same period in 2014.

Commenting on the results, chairman Hussain Sajwani, said: "These numbers show that the Dubai real estate market remains healthy. We operate primarily in our home city of Dubai - a truly global and metropolitan city, with advanced international regulations in place which promote growth and innovation."

During 2015, the Dubai real estate market has continued to mature, with growth stablisation across the period. This is a natural progression for any developing market which ensures long-term sustainability, he added.

According to him, Damac's portfolio of luxury living experiences and hospitality projects offer sound investment opportunities to the international market while at the same time growing and enhancing the aesthetic beauty of Dubai.

"We believe Dubai is well set for continued growth, and we expect the city will consistently outperform more established metropolitan centres around the world. This outperformance is underpinned by a stringent and efficient regulatory framework which supports the government’s vision to create a sustainable city which enhances the experience for those living, working and visiting Dubai," he added.

Damac, stated Sajwani, continued to bring new products to market with the introduction of Paramount Hotel and Residences on Sheikh Zayed Road, Merano Tower on the Dubai Canal, the Promenade Residential and Serviced Apartments at Akoya by Damac and non-serviced apartments, Carson at Akoya by Damac.

At Akoya Oxygen, ‘Vista Lux’, the jewel of the development was introduced. This is the retail, food and beverages (F&B) and entertainment hub of the project with over 2,000 serviced residences.

Further phases of villas and townhouses were also introduced at Akoya Oxygen, he added.

The brand association portfolio was enhanced with the announcement of Bugatti-styled villas within the Akoya by Damac master development and the introduction of Aykon with Interiors by Versace in London, UK.

The brand associations now include Versace, Fendi, Bugatti, Paramount Hotels & Resorts, the Trump Organisation and Tiger Woods, said a proud Sajwani.

"At Damac, we have developed a market leading brand firmly positioned in the luxury sector and we believe this is a powerful differentiator from our competitors as we continue to offer a unique product with a range of properties and offers to address most sub-segments of our target customers," he observed.

On the future outlook, Sajwani said continued economic and demographic growth, together with ambitious infrastructure spend and global world class events, would support the market through 2020.-TradeArabia News Service




Tags: Damac | profit | brand |

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