Dubai Developers Suffer In Abu Dhabi
The fortunes of property developers in Dubai and Abu Dhabi diverged last year. Dubai’s Emaar Properties PJSC reported a 58% slump in profit, while Damac Properties PJSC posted its second consecutive full-year loss -- underscoring the impact of an oversupply aggravated by the coronavirus pandemic.
Published -
Feb 16, 2021 4:33 AM
The fortunes of property developers in Dubai and Abu Dhabi diverged last year. Dubai’s Emaar Properties PJSC reported a 58% slump in profit, while Damac Properties PJSC posted its second consecutive full-year loss -- underscoring the impact of an oversupply aggravated by the coronavirus pandemic. Aldar Properties PJSC in neighboring Abu Dhabi, however, performed better than Emaar and Damac. It posted a profit that was almost unchanged from a year ago as it benefits from government contracts. A property glut and faltering demand have driven Dubai home prices down by more than 30% since the market peaked seven years ago, a decline made worse by the pandemic. The government last year set up a committee to manage supply and demand, while property developers temporarily halted new projects.