Union Properties reported a 50 per cent year-on-year increase in first quarter profit, despite lower income, the Dubai-listed firm said.
Net profit attributable to equity holders in the three months ending March 31 reached Dh42.1 million, up from Dh28.1m in a year-earlier period, the company said in a statement to the Dubai Financial Market. The profit increase was achieved despite a 17.5 per cent decline in total income to Dh213.4m, down from Dh258.5m in a year-earlier period.
Revenue from contracting and operations was 7.8 per cent lower at Dh131.7m, and property management and sales revenue was 12.5 per cent lower at Dh16.3m.
The developer is planning to launch soon a project containing a hotel and retail units known as The Link, chairman Khalid Bin Kalban said at last week’s launch of Dh450m Oia Residences project in Dubai’s Motor City.
“We’re finding it to be a very good time to build because contractor prices are astonishingly good as far as developers are concerned,” he said.
He added that although the current market for property sales is “soft”, he expected prices to pick up again next year.
“We are riding this cycle and I think the market will rebound hopefully within one year’s time. I think by the end of 2017 it looks positive,” Mr Bin Kalban said.
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