Damac Properties, a leading property developer in the Middle East, said it has registered a net profit of Dh3.69 billion ($1.04 billion) for the financial year 2016, achieving net margins of 52 per cent.

Announcing the results, Damac said its revenues for the year soared to Dh7.16 billion ($1.9 billion) with gross profit margins standing at 56 per cent.

Total assets increased five per cent to Dh24.63 billion at year end 2016 compared to Dh23.45 billion in 2015.

As of December 31, 2016, cash and bank balances stood at Dh8.32 billion; development properties grew 12 per cent to Dh10.25 billion over the year and total equity grew 28 per cent to Dh12.62 billion from Dh9.83 billion in 2015, net of dividend.

Cash dividend of Dh0.25 per share amounting to Dh1.51 billion has been proposed by the company’s board of directors subject to approval of the shareholders in the forthcoming annual general assembly.

Earnings Per Share (EPS) for 2016 amounted to Dh0.61 per share.

Last year, the Dubai luxury developer completed over 1,600 units at its Damac Hills (previously Akoya) development. Total deliveries for 2016 were recorded at over 2,400 units.

The booked sales reached Dh7.05 billion for the full year, while it surged to Dh1.71 billion for the fourth quarter alone, thus showing a stable market.

Hussain Sajwani, the chairman of Damac, said: "The Dubai real estate market had stabilised over 2015, with no major fluctuations in prices. There is demand for quality real estate but with the challenging market conditions we are operating in, what has changed is customers are seeking better value."

"Our medium to long-term outlook remains positive,  and we are well-positioned to accommodate and navigate these conditions," noted Sajwani.

"During the year, we launched a series of innovative products in our golf community Akoya Oxygen that were priced to attract a wider audience, including first-time buyers and millennials, looking for properties in premium locations at an attainable price and with favourable payment terms," he added.

Damac had in 2016 launched a range of residential and hospitality projects within Aykon City, a 4 million sq ft development comprising six towers, located on Sheikh Zayed Road and overlooking the Dubai Canal.

"Investors had the opportunity to purchase hotel rooms and luxury serviced apartments at this strategic location and tap into the potential that the tourism industry presents," stated Sajwani.

Hospitality units in a number of other locations including Dubai South were launched to meet the anticipated demand from the upcoming World Expo 2020.

Damac Maison de Ville Tenora, a luxury serviced hotel apartment tower strategically located in close proximity to Al Maktoum International Airport, was the first ever project in Dubai South to be completed and  handed over.

In the fourth quarter, Damac’s momentum on handovers was significantly amplified, delivering over 1,100 units in the quarter alone, and bringing the total units of deliveries to more than 2,400 for the year.

Sajwani said 2016 was a year of market stabilisation and Damac would continue to innovate on its products to meet the demands of a wider audience of customers.

"Our business model is such that it supports a steady pipeline of luxury properties being offered with our main differentiator being a range of premium locations and value that we bring to investors," he added.-TradeArabia News Service