Damac Properties Dubai, a leading property developer in the Middle East, has posted a net profit of Dh880 million ($240 million) for the first quarter of 2017, achieving net margins of 45 per cent.

Damac recorded revenues of Dh1.95 billion, with gross profit margins at 54 per cent during the period, while total assets increased by 6.3 per cent to Dh26.17 billion compared to Dh24.63 billion at year-end 2016.

As of 31 March 2017, cash and bank balances stood at Dh9.11 billion; development properties stood at Dh10.22 billion largely unchanged versus December 2016. Total equity stood at Dh13.5 billion which is an increase of seven per cent from year-end 2016.

Earnings per share (EPS) for the quarter amounted to Dh0.15 per share.

Damac completed a further 550 units in Damac Hills (previously Akoya) master development which represent around 20 per cent of its full year 2017 guidance of 2,800 units.

During the quarter, booked sales reached Dh2.2 billion, compared to Dh1.71 billion in 4Q 2016 and Dh2 billion in the same period last year, demonstrating a sequential increase and a stable market in general and is consistent with earlier guidance of Dh7 billion for the year 2017.

Hussain Sajwani, chairman of Damac, said: “As we highlighted in our FY 2016 results, the Dubai real estate market has stabilised; this was especially visible in the last few months of 2016. With no major fluctuations in prices but with an increase in volumes and transactions in the market in general, we can say Q1 2017 has been strong, with booked sales of Dh2.2 billion.”

“There is continued demand for quality real estate that presents better value. Despite the challenging market conditions, our medium- to long-term outlook remains positive, as we remain dynamic and continue providing the right products that suit the changing market needs.

“During the quarter, we continued to launch a series of innovative products in our golf community Akoya Oxygen that were priced to attract both investors and end-users. Customers are seeking properties in premium locations and at an attractive price point, which provides better value in both the case of seeking higher returns on investment or living in a home that is part of a comprehensive lifestyle community.

“Due to the efforts of our visionary leadership in Dubai, the emirate is consistently outperforming other regional as well as international markets. The emphasis on and pace at which world-class infrastructure is being built to serve the anticipated needs of the city for now and beyond is providing confidence to investors and businesses, attracting them to live and work in Dubai,” he added.

“2016 was a year of market stabilisation and the start of 2017 has been promising and we will continue to innovate on our products to meet the demands of a wider audience of customers; we will also continue to execute and deliver on existing projects, with a big focus on shareholder returns as well as customer satisfaction,” Sajwani concluded. – TradeArabia News Service