Nakheel Profit Falls in Dubai
Nakheel, a property developer based in Dubai, today announced a net profit of AED2.51 billion for the first six months of 2018. The profit for the same period in 2017 was AED2.61 billion.
”Nakheel handed over 451 units to customers in the first six months of the year. The company’s non-development businesses – retail, leasing, hospitality and asset management – all performed strongly. Annual revenues from these sectors is now AED2.6 billion – three times as much as in 2010 – and currently accounts for 38 per cent of the company’s total revenue. Revenue from these sectors will continue to grow with the completion of retail and hospitality projects such as The Pointe, due to open this year, and The Night Market, Warsan Souk, The Palm Tower and Nakheel Mall, which are due to come on line in 2019,” a company press statement said.
Nakheel officially signed construction contracts worth more than AED6 billion between January and June this year. Among them: contracts for AED4.2 billion for Deira Mall; AED600 million for Nad Al Sheba Mall; AED447 million for a bridge between Deira Islands and mainland Dubai; and AED385 million for the 800-room RIU resort at Deira Islands.
In H1 2018, the company also signed a joint venture with Al Nasr Sports & Cultural Club for an AED300 million retail centre, announced a planned partnership with Austria’s Vienna House hotels for a new resort at Deira Islands and declared its first project outside of Dubai – an AED75 million retail centre in partnership with the Sharjah Investment and Development Authority.
Average villa and apartment sales prices fell by 4 percent during the second quarter of 2018, with an annual drop of 11 percent, according to Asteco.
Its Dubai Real Estate Report Q2 2018 said the decline in apartment sales was most prominent in Dubai International Financial Centre (DIFC), Discovery Gardens and Dubai Sports City – registering a 6 percent fall since Q1.