Dubai developer Union Properties recorded a surge in its second-quarter net profit on the back of higher revenue as the emirate's property market continues to boom amid soaring demand.
The company’s net profit for the three-month period to the end of June rose to Dh5.41 million ($1.47 million), from Dh285,000 in the same period last year, Union Properties said in a filing on Thursday to the Dubai Financial Market, where its shares are traded.
Revenue from contracts with customers in the April to June period rose more than 20 per cent annually to Dh118.7 million.
The company also recorded a gain on the sale of investment properties during the period amounting to Dh32.4 million, compared to Dh1.7 million in the second quarter of last year.
“The second quarter … witnessed a surge in demand for properties across Dubai and Union Properties capitalised on these favourable market conditions to achieve positive financial results,” the company said.
“With a diverse portfolio of residential, commercial, and mixed-use developments, Union Properties is well-positioned to benefit from the increasing opportunities in Dubai’s growing real estate market.”
Dubai's property market registered strong growth in the first quarter of this year, with total transaction value up 80 per cent annually to Dh157 billion, according to official data.
Total transactions rose 49 per cent to 38,715 during the three-month period.
For the half of the year, Union Properties swung to a profit of Dh17.7 million, from a loss of Dh12.2 million in the same period last year, it said.
Revenue from contracts with customers in the January to June period rose by about 18 per cent annually to Dh240.8 million.
“The achieved net profit highlights our strategy efficiency and instils confidence in prospects,” Amer Khansaheb, board member and managing director of Union Properties, said.
“With strategic positioning, we capitalise on Dubai's thriving real estate market momentum,” Mr Khansaheb added.
