Home RSS
Real Estate

UAE property firms 2nd qtr hit by low sales

UAE property firms 2nd qtr hit by low sales - UAE - Dubai - Property Sales - Housing Crisis

Property firms in the United Arab Emirates are poised to report weaker second-quarter profits on lower revenues from land and property sales, as the real estate sector continues to suffer in the global financial crisis.

Dubai's Deyaar. the emirate's second-largest developer by market capitalisation, set the tone, reporting on Sunday its earnings for the period slumped 69.5 percent from the previous year.

"Earnings across the UAE real estate board are likely to be weak for the second quarter...with real estate companies unable to book revenues from land sales," said Chet Riley, an analyst at investment bank Nomura.

"Any development delays, which we are starting to see, will not allow developers to recognise sales revenues and may lead to further analyst earnings downgrades," he said.

Property prices have been under pressure since late last year, when the financial crisis and a slump in oil prices ended an economic boom in the Gulf region.


Add your comment
  Anonymous comment
  Remember me on this computer

Send me by email any answer to my comment
Send me by email every new comment to this article

Disclaimer: The information presented and opinions expressed herein are those of the authors and do not necessarily represent the views of Estates Report and/or its partners.