Dubai-based developer Damac Properties slipped to an annual loss in the first quarter of 2020 despite a 37 per cent year-on-year revenue hike.
The company reported a Dh106 million loss for the period, compared to a Dh31m profit in the same quarter last year, according to a regulatory filing on Sunday with the Dubai Financial Market, where its shares trade.
Profits were lower due to a Dh130m impairment provisions taken against the value of development properties, and a Dh52m impairment made against trade receivables. Revenue increased to Dh1.2bn, up from Dh896m in the same period last year.
“In 2020 we will remain focused on delivering projects that are already in our development pipeline,” the company’s chairman, Hussain Sajwani, said.
“Our strategy is aligned with the overarching need to create a balance between supply and demand in Dubai's real estate market."
Concerns about an oversupply of properties in Dubai have pushed prices lower and led to the establishment of a higher committee in September last year, bringing public and private developers together to achieve a better balance between supply and demand.
More than 12,000 units were handed over in the first quarter, according to JLL, with average sale prices falling by 7 per cent year-on-year.
In a recent interview with Bloomberg TV Mr Sajwani said he expects market fundamentals will improve next year as economic activity ramps up ahead of Dubai's Expo 2020 event, which was recently postponed until October 2021, as a result of the coronavirus outbreak.
“I think in October 2021, when the expo starts, we could see the market changing in a positive way,” Mr Sajwani said.
He predicted a tough year for the property sector in 2020, but said the market offered bargains for potential buyers.
Damac delivered more than 650 units in the first quarter in its Akoya master community. The company said it has implemented lockdown and social distancing measures following the coronavirus outbreak, and that it has “proactively and seamlessly” moved its sales platform online.
“This will change the way business is conducted in the future and Damac is ready due to historical heavy investment in digital transformation,” the company said in its statement.
Damac’s shares did not trade on Sunday as the Dubai Financial Market is closed for the Eid Al Fitr holidays.
The company’s shares halved in value between January and mid-March this year, but have subsequently rebounded and closed last week 16 per cent lower for the year-to-date at Dh0.62 per share, giving it a market capitalisation of Dh3.75bn.
If you go…
Emirates launched a new daily service to Mexico City this week, flying via Barcelona from Dh3,995.
Emirati citizens are among 67 nationalities who do not require a visa to Mexico. Entry is granted on arrival for stays of up to 180 days.
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THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Charlotte Gainsbourg
Rest
(Because Music)
Rafael Nadal's record at the MWTC
2009 Finalist
2010 Champion
Jan 2011 Champion
Dec 2011 Semi-finalist
Dec 2012 Did not play
Dec 2013 Semi-finalist
2015 Semi-finalist
Jan 2016 Champion
Dec 2016 Champion
2017 Did not play
ICC Awards for 2021
MEN
Cricketer of the Year – Shaheen Afridi (Pakistan)
T20 Cricketer of the Year – Mohammad Rizwan (Pakistan)
ODI Cricketer of the Year – Babar Azam (Pakistan)
Test Cricketer of the Year – Joe Root (England)
WOMEN
Cricketer of the Year – Smriti Mandhana (India)
ODI Cricketer of the Year – Lizelle Lee (South Africa)
T20 Cricketer of the Year – Tammy Beaumont (England)
RESULT
Valencia 3
Kevin Gameiro 21', 51'
Ferran Torres 67'
Atlanta 4
Josip Llicic 3' (P), 43' (P), 71', 82'
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The bio
Date of Birth: April 25, 1993
Place of Birth: Dubai, UAE
Marital Status: Single
School: Al Sufouh in Jumeirah, Dubai
University: Emirates Airline National Cadet Programme and Hamdan University
Job Title: Pilot, First Officer
Number of hours flying in a Boeing 777: 1,200
Number of flights: Approximately 300
Hobbies: Exercising
Nicest destination: Milan, New Zealand, Seattle for shopping
Least nice destination: Kabul, but someone has to do it. It’s not scary but at least you can tick the box that you’ve been
Favourite place to visit: Dubai, there’s no place like home
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MATCH INFO
Uefa Champions League semi-final, first leg
Barcelona v Liverpool, Wednesday, 11pm (UAE).
Second leg
Liverpool v Barcelona, Tuesday, May 7, 11pm
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Company%20profile
MATCH INFO
Juventus 1 (Dybala 45')
Lazio 3 (Alberto 16', Lulic 73', Cataldi 90 4')
Red card: Rodrigo Bentancur (Juventus)
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The%20specs%3A%202024%20Mercedes%20E200
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Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Tips on buying property during a pandemic
Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.
While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.
While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar.
Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.
Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.
Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities.
Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong.
Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.
Small%20Things%20Like%20These
The specs
Engine: Turbocharged four-cylinder 2.7-litre
Power: 325hp
Torque: 500Nm
Transmission: 10-speed automatic
Price: From Dh189,700
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Engine: 80 kWh four-wheel-drive
Transmission: eight-speed automatic
Power: 402bhp
Torque: 760Nm
Price: From Dh280,000
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COMPANY%20PROFILE
The specs: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
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Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
Transmission: Continuously variable tranmission
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