Damac hits handover milestone, but net profit down by 58% in 2018

Damac hits handover milestone, but net profit down by 58% in 2018
Published: 28 March 2019 - noon
By: Jack Ball

Development giant Damac Properties is optimistic about ‘positive GDP growth' in Dubai in 2019, even as its net profits have declined by more than half their value in 2018.

Net profits at the Dubai-listed development company stood at $313m (AED1.15bn) in 2018, marking a 58% decline on 2017, when its bottom line was $751.4m (AED2.76bn).

The group brought in $1.7bn (AED6.1bn) in cash last year, a 23% fall on its 2017’s revenue figure of $2bn (AED7.5bn). Booked sales for 2018 were reported at $1.2bn (AED4.3bn), while total assets stood at $6.9bn (AED25.2bn).

Damac said in a statement that it had delivered more than 4,100 units last year – a figure it added was its highest delivery rate within a calendar year.

Last year saw the group introduce the Reva Heights projects overlooking Dubai Water Canal in Business Bay, and residential development Fiora at Golf Verde in Dubailand.

Speaking on the results, Hussain Sajwani, chairman of Damac Properties, said: “In 2018, we maintained our pace of completion even as the market continues to correct itself.

“It is due to [the UAE leadership’s] efforts and proactive response to global changes that we can look forward to positive GDP growth in 2019,” he added.

February 2019 saw the real estate giant unveil its ready-built Golf Town homes within the Damac Hills community.

Speaking on the project last month, senior vice president at Damac Properties, Niall McLoughlin, said various studies pointed to a “growing demand” for affordable, community-focused residential projects for first-time buyers in the local market.

It was also revealed in January 2019 that eight companies are bidding to win a mechanical, electrical, and plumbing works contract for Damac’s Vera Residences apartments in Dubai.

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