Damac Properties PJSC plunged on Sunday after posting a loss and its chairman saying it’ll take at least one to two years for the United Arab Emirates’ real estate market to get out of its downturn.
“I anticipate it will take at least 12 to 24 months to see a substantial recovery, Chairman Hussain Sajwani said in a statement after Damac posted its second consecutive full-year loss.
“2020 was a very tough year for all property developers in the United Arab Emirates and Damac felt the negative impact just the same, he said.
The coronavirus pandemic has aggravated a property slump in Dubai, where oversupply and economic uncertainty has pushed down prices for years. The government last year set up a committee to manage supply and demand, while property developers temporarily halted new projects.
Damac shares slumped as much as 4.8 percent, the most in about two months, to trade at 1.20 dirhams. It was the biggest drag to Dubai’s DFM General Index, down 0.1 percent.