RIYAHD: Dubai and Abu Dhabi real estate developers have had a mixed year as Emaar real estate announced a 58 percent decline in its profit, while DAMAC Properties suffered losses for the second year in a row, highlighting the problem of excess real estate units in Dubai, exacerbated by the Coronavirus pandemic, according to Asharq Business.
In Abu Dhabi, Aldar outperformed Emaar and DAMAC, sustaining the same profits as last year and benefiting from government contracts.
Emaar posted net profit of AED 2.62 billion ($71 million) in 2020, compared to AED 6.2 billion last year, and revenues of AED 19.71 billion, compared to AED 24.4 billion in 2019.
DAMAC has posted a loss of AED 1.04 billion, compared to a loss of AED 37 million last year, while revenues reached AED 4.67 billion, compared to AED 4.4 billion in 2019.
Aldar posted profits of AED 1.932 billion, compared to AED 1.925 billion last year, and its revenues amounted to AED 8.4 billion, compared to AED 7.1 billion in 2019.
Emaar’s shares are up 6.8 percent this year and Aldar’s have risen 18 percent, while DAMAC’s shares are down 4.6 percent.
Dubai property prices declined by more than 30 percent due to real estate glut and the stagnant demand which was exacerbated by the Covid-19 pandemic. Last year, the government launched a committee to manage supply and demand, while developers temporarily halted new projects, says Asharq.
