Damac Properties has reported a net profit of AED 1.05bn ($286mn) for the first quarter of 2016, down 15 percent on the same period of 2015.
Revenues for the three months to 31 March fell by 33.3 percent to AED 1.62bn from AED 2.43bn in the same period of 2015.
The developer said it expected to deliver around 2,700 to 3,000 units across its portfolio during the course of this year. In the first quarter, 306 units were delivered in the DAMAC Maison Royale The Distinction project in Business Bay.
Booked sales for the period reached AED 2bn, in line with Q4 2015, and 5% growth from the lows of Q3 2015, which the company said shows continuous good interest in its products and the Dubai market.
Hussain Sajwani, chairman of DAMAC, was upbeat about the market despite the drop in quarterly figures. “The Dubai market is defying the skeptics,” he said. “The levels of interest, activity, transaction values and volumes are solid.
“We believe Dubai is well set for continued growth, and we expect the city will consistently outperform more established metropolitan centers 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.”
DAMAC continued to bring new products to market with the introduction of AYKON City, a four-million-square-foot development comprised of six towers, located on Sheikh Zayed Road and overlooking the Dubai Canal.
The development includes the first all-suite AYKON Hotel with “AYKON Dare,” an adrenaline fuelled tourist attraction.
This project will also comprise a DAMAC Maison Royale serviced hotel residences, an apartment tower, an office tower, as well as two ultra-premium and exclusive 30-storey residential towers overlooking the Dubai Canal and Safa Park.
Sajwani concluded: “At DAMAC, we have developed a market leading brand 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.
“We remain very positive on the future of the real estate sector in Dubai, and expect very healthy progress as further infrastructure investment leads developments through 2020.”