Dubai’s largest developer
Emaar Properties reported a 28.6 percent rise in second-quarter net profit on
Monday, marginally beating forecasts, but revenue from property sales in the
emirate dropped.
The builder of the world’s tallest tower Burj
Khalifa made a net profit of AED868 million ($236.3 million) in the three
months ending June 30, compared with AED675 million a year before, it said in a
statement to Dubai’s bourse.
The outcome beat an average forecast of AED839.8
million for the period.
Emaar’s earnings are seen as an key indicator for
Dubai’s real estate market, which has recovered in the last two years after
collapsing following the global economic crisis in 2008.
However, renewed speculative buying and new project
announcements have pushed up prices, making them unaffordable to many and thus
slowing sales, raising fears of another property market bubble.
Property consultant JLL said in its latest report
that there had been a marked slowdown in the volume of residential sales in
Dubai in the second quarter.
Emaar sold properties in Dubai worth AED3.12 billion during the quarter, down from AED3.29 billion in the same quarter last
year, Reuters calculations showed, based on half-year figures.
The company’s revenue for the quarter dropped to
AED2.81 billion from AED3.11 billion, the statement said. But revenue from
its malls, retail and hospitality business grew by 12 percent.
Emaar Malls Group, a division of Emaar Properties,
will look to sell a quarter of its shares to the public on the Dubai stock
market when it lists later this year.
Shares of Emaar ended 3 percent up, before the
announcement of the results.
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