Abu Dhabi developer Manazel Real Estate approves bonus share after 29% profit rise

Manazel Real Estate shareholders approved the distribution of a 4 per cent bonus share after the Abu Dhabi developer reported a 29 per cent rise in full year profits to Dh195 million.

The developer said the growth in earnings was driven by a restructuring strategy started in 2014. Revenues were flat at Dh740m.

“This was a pivotal year for Manazel Real Estate as we advanced our commitment to the middle-income segment in the UAE with housing and retail offerings,” said chairman Mohamed Al Qubaisi. “As a pioneer in the middle-income segment, we are uniquely positioned to support this underserved sector and to support the government of Abu Dhabi as it strives to make affordable housing more abundant in the years to come.”

Manazel reported “strong demand” for its Al Reef 2 villas and growth in recurring revenues from its retail, residential and district cooling assets.

Brokers said this month that the rental market in the capital was showing signs of fragmentation with softer demand for higher-priced areas and a shortage of more affordable homes.

In its Abu Dhabi Spring 2016 property market outlook, Cluttons said that housing budgets continue to hover at about the Dh100,000 to Dh150,000 mark – but average apartment rents start at Dh160,000 per year and average villa rents are Dh270,000.

CBRE’s latest Abu Dhabi Marketview reported that although overall rents were flat, cheaper units achieved rental growth of 2 per cent during the first quarter of the year.

business@thenational.ae

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