Dubai-based developer Damac Properties reported a 42 per cent decline in year-on-year sales for the first quarter of 2016 of Dh1.62 billion compared with Dh2.8bn a year earlier.
Net profit also dropped by 15 per cent to Dh1.05bn.
The amount of new sales booked during the quarter were Dh2bn – a drop of 75 per cent on the same period last year.
However, Damac said that sales were flat quarter-on-quarter and were 5 per cent higher than at their recent low point in the third quarter of 2015.
The company’s chairman, Hussain Sajwani, said that its figures showed the Dubai market “is defying the skeptics”.
“The levels of interest, activity, transaction values and volumes are solid.”
The company also said that it had broadened its product range, with the introduction of its six-tower, four million square foot Aykon City development fronting Sheikh Zayed Road.
“We believe Dubai is well set for continued growth, and we expect the city will consistently outperform more established metropolitan centres around the world,” Mr Sajwani said.
“We remain very positive on the future of the real estate sector in Dubai, and expect very healthy progress as further infrastructure investment leads developments through 2020.”
During the quarter, it handed over 306 units at the Damac Maison Royale The Distinction project in Business Bay. The developer expects to hand over between 2,700 and 3,000 new units by the end of 2016.