Dubai’s largest listed developer Emaar Properties’ second-quarter profit fell 7.4% as the Middle East financial hub’s property market continues to cool.
The emirate’s oversupplied residential real estate market, down by at least a quarter since the middle of 2014, is showing no signs of a recovery.
Emaar made a net profit of $373 million (1.37 billion dirhams) in the April-June period, according to Reuters calculations based on a company bourse statement on Sunday, compared to 1.48 billion dirhams in the 2018 second quarter.
EFG Hermes estimated Emaar would make 1.55 billion dirhams in net profit.
Second-quarter revenue contracted 3.6% to 5.68 billion dirhams, Reuters calculated.
The developer of the world’s tallest tower, Dubai’s Burj Khalifa, said half-year profit fell 4% to 3.1 billion dirhams, the company said, and half-year revenue declined 4% to 11.57 billion dirhams.
Half-year sales rose 52% to 9.4 billion dirhams.
It did not say what the sales were, though the developer is largely involved in residential property sales.
The company did not immediately respond to an emailed request to clarify the matter.
Total sales backlog was 49.2 billion as on June 30, which Emaar said would be recognized as revenue within the next three to four years.