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Dubai: A steadfast focus on the premium space continues to boost Damac Properties financials, by recording Dh792.9 million in net profit on revenues of Dh1.78 billion for the first three months of the year. Its sales booked during the period totalled Dh2.8 billion, which seems to confirm there are exceptions to the prevailing subdued buying sentiments in Dubai realty. The first quarter of 2015 net scores are better against the Dh770.7 million recorded for the same period last year. As of March 31 this year, the developer’s advances from customers weighed in at the Dh7.85 billion.
“Booked sales for the first three months show that there continues to be strong interest in the right product at the right price,” said Hussain Sajwani, Chairman, in a statement. “In the period we saw recognised revenues [of] Dh1.79 billion and a gross profit of Dh1.14 billion.
“We are firm believers in the Dubai property market — I believe we are set for a period of steady, sustained growth in the medium term.”
The developer has lot going on with its twin Akoya developments in Dubailand, which is where it is generating the bulk of its new sales. Of late, it has been coming up with fairly aggressive sales packages for units at the Akoya, including the staggering of installements and the like. And for a certain promotional period, it struck an understanding with Abu Dhabi Commercial Bank to waive the processing charges on mortgages for Akoya units.
At Akoya Oxygen, the developer maintains that “significant early construction progress” has been attained, and the external road works “well underway”. The bulk earthwork designs have been approved and the contractor is on site.
Contracts for the first 1,500 villas have also been awarded, while design of the Tiger Woods designed golf course is done with tenders to be issued in coming months.
The Akoya by Damac development, meanwhile, has seen its golf course related works “substantially finished” and the clubhouse construction underway. The main works package for over 2,200 villas has been awarded, with handover of the first villas expected later this year or early next.
“We have seen demand for luxury property remain solid ... the Dubai market continues to mature and we are confident that this will bring long-term stability to the sector,” said Sajwani.
The other revenue build up is coming from the developer’s growing portfolio of serviced hotel apartments, seen as having enduring traction with Gulf based investors.
Outside of Dubai, the company is planning the handover of its first project in Doha during this quarter.
Source: Manoj Nair, Associate Editor, gulfnews.com