Dubai's Damac Properties reported a 37.4 per cent fall in second-quarter net profit on Sunday.

The developer reported a net profit of Dh886.8 million ($241.4 million) for the three months to June 30, according to a statement to Dubai's bourse. This was down from Dh1.42 billion a year earlier.

During the first six months of 2016, Damac recorded revenues of Dh 3.37 billion. Gross profit margin stood at 59 per cent.

Net profit for the reporting period stood at Dh1.94 billion, a drop of 27 per cent compared to H1 2015. Total assets increased to Dh23.51 billion at 30 June 2016 compared to Dh23.45 billion at 31 December 2015.

Hussain Sajwani, chairman of Damac Properties, said:  “The Dubai market remains solid. The levels of interest in our new product launches and existing portfolio are healthy.”

“In the first half of 2016, Damac added Aykon City to its portfolio of standout projects, a landmark in freehold developments in the most sought after location on Sheikh Zayed Road.  Furthermore, Damac continues to introduce innovative concepts with our master developments; Akoya by Damac and Akoya Oxygen.

“We believe that Dubai is well positioned for continued growth, and we expect the city to consistently outperform more established metropolitan centers around the world. This outperformance is underpinned by a stringent and efficient regulatory framework stemming from the Government’s vision to create a sustainable city which enhances the experience of those living, working and visiting Dubai,” he added.

“Most recently, Damac Properties continued to bring new products to market with the introduction of Aykon City, a four-million-sq-ft development comprising six towers, located on Sheikh Zayed Road and overlooking the Dubai Canal.

“Damac also announced the launch of the much-awaited 60-storey residential tower within AYKON City following the first quarter launch of the hotel and serviced apartments’ tower within the same development. The residential tower represents one of the few opportunities to own a luxury residence overlooking the Dubai Canal,” Sajwani explained.

“At Damac, we have established ourselves as a market leader firmly positioned in the luxury real estate sector. Adding to this business model that is focused on returns and sales channel innovation, we have powerful differentiators that will support a continued pipeline of unique products with a range of properties and offers to address most sub-segments of our target customers.

With the first half of 2016 behind us, we are more optimistic today about the business and expect to end 2016 in a more positive position,” he concluded. – TradeArabia News Service & Reuters