Damac reports decline in property development sales

LONDON: Damac Properties reported a second consecutive quarterly income decline after property development sales fell sharply.
The developer behind the only Trump-branded golf course development said total comprehensive income declined 19 percent to 704.8 million dirhams ($191.9 million) as the money it earned from property development fell.
Second-quarter revenue dropped to 1.57 billion dirhams from 1.75 billion dirhams a year earlier. Hussain Sajwani, chairman of Damac Properties, gave an upbeat assessment of the market despite the decline in sales.
“The property market in Dubai continues to demonstrate further stabilization, and our medium- to long-term outlook remains positive as Damac continues to develop innovative products that appeal to both end users and investors,” said Sajwani.
Damac is developing thousands of new homes across three main projects in the emirate — Aykon City, Damac Hills and Akoya Oxygen.
It delivered 1,071 units at its Damac Hills project in the first half of the year, bringing the total number of homes handed over to 3,100.
In February, the developer opened its flagship Trump International Golf Club Dubai, the first Trump-branded course to be developed in the Middle East.
Damac is currently building about 5,000 villas at its Akoya Oxygen master community in Dubailand, with a further 1,300 villas scheduled to begin construction in September 2017, the developer said.
Work is also nearing completion on Damac Towers by Paramount Hotels & Resorts, a four-tower, 250-meter high development consisting of over 2,000 units in the Business Bay district. Damac said property development revenues fell to 925.9 million dirhams in the second quarter, compared to 1.44 billion dirhams a year earlier.
However, land sales rose to 644.2 million dirhams from 312.8 million dirhams over the same period.