Damac Properties saw a yearly profit fall last year and earnings are anticipated to stay the same in the next two years, even after the real estate prices in Dubai have hit the bottom, according to the chairman.
Since the mid-2014 peak, Dubai real estate prices have seen a steady fall, which hurts the earnings of developers and forces engineering and construction firms to cut jobs and close down expansion plans.
In a conversation, Chairman Hussein Sajwani informed CNBC at the World Economic Forum in Davos that Damac’s profit has fallen in the past year and same is expected this year and the next one although he did not provide any figures.
Sajwani also stated that 2018 had been challenging for Damac, which has yet to report 2018 results, with both sales and prices on a decline. The firm accounted a 68 percent fall in third-quarter profit.
He also said in a transcript of the CNBC interview that according to him they are at the bottom in respect to the price; however, it will take at least two years to absorb the supply.