Net profit rises 30% to $1.2bn for Dubai's Damac
Hussain Sajwani, chairman of the development firm, said he expects Dubai's property market to be under-supplied this year as oil prices hit market sentiment
Dubai-based Damac Properties has announced its financial results for 2015.
The company's revenue for the year hit $2.32bn (AED8.54bn), and its total assets grew by 25% to $6.38bn (AED23.45bn).
The developer registered a gross profit worth $1.38bn (AED5.07bn), and net profit worth $1.23bn (AED4.51bn), a 30% year-on-year rise for the company.
Damac's gross debt stood $1.02bn (AED3.76bn) as of 31 December, 2015.
In a statement to Dubai Financial Market, the developer said its area sold during 2015 spans 75.4ha (8.12 million sqf), which is 3% higher than in 2014.
The company said it completed over 2,600 units in 2015, including units at Akoya by Damac.
Other completions in the same development include three buildings in the G+7 structures totaling 479 units (Golf Panorama, Golf Horizon, and Golf Vista).
The developer also completed the first project in Qatar during the year, with 512 units in Doha.
Remarking on the results, Damac chairman, Hussain Sajwani, said: "The Dubai real estate market is at a consolidation point in the cycle and the rapid growth witnessed in 2012-2014 is now behind us.
"However, this market creates opportunities for well-capitalised and experienced companies like ourselves with a strong track record."
Sajwani said the oil price "dynamic is certainly a factor".
"But one should always remember that a falling oil price creates as well as erodes wealth.
"Devaluing currencies clearly drive asset prices up in hard dollars while at the same time driving investors to want to lock in parts of their wealth in the hard currency in fear of further devaluation."
Damac's chairman said the most significant development of the year was that it ended with only up to 8,000 supplied units, "a massive reduction on the initial 25,000 units supply speculation".
Stating he expects Dubai's market to display resilience amidst challenging economic developments in 2016, Sajwani continued: "We see the structural shortage of supply as the cornerstone of the market resilience.
"We expect the total supply in Dubai to again fall short of 10,000 new units in 2016 eventually driving the market back into positive pricing growth territory, perhaps towards the second half of the year or early 2017."