GulfNews reports that Emaar Properties had a first quarter year on year decline in profits of 73.5 per cent, with a net profit of Dh237 million in the first three months of 2009, compared with Dh 896 million in the same period last year. Total revenues have also dropped, from Dh 2.52 billion in the first quarter of 2008, to Dh 1.55 billion in the period upto March 31 this year, a decline of 39 per cent.
These poor results were attributed to lower deliveries, as well as lower sales of completed units.
Dubai’s real estate sector is currently undergoing a difficult a difficult adjustment, the report mentions, after prices reached all-time high levels in 2008, before the impact of the global economic slowdown were made apparent in the Gulf region.
“The tough economic environment globally calls for tough measures and a strategic approach to ensuring sustained growth,” said Mohammed Alabbar, chairman of Emaar Properties, in an emailed statement. “We have therefore streamlined our efforts to shore up consumer confidence while implementing stronger measures internally to optimize resource utilisation.”
well, maybe reem was right the other day when she urged us to invest in real estate. Can things get lower? I still think there is some more room below us...
I told you so!