Nine-month net profits of five of the largest listed real estate firms in the UAE declined by 82.3 per cent, a research by Emirates Business showed.Combined nine-month net profits of the five firms – led by Dubai-based Emaar Properties, the region's largest real estate company – contracted from $3.13 billion (Dh11.48bn) in September 2008 to $552.8 million in September 2009. Emaar turned its 2008 nine-month profits of $1.3bn into a $107m loss in 2009.
Other developers, including Deyaar, Sorouh, Aldar Properties and RAK Properties, too declined by between 82 and 45 per cent (see table).
Real estate has been one of the hardest hit sectors globally. The UAE too has seen a massive decline in rental and sale prices, with analysts maintaining that Dubai properties have been hit the most.However, analysts maintain that oversupply concerns in Dubai may have been overstated and prices have started edging up once again.
A recent HC Brokerage report on the sector, said: "Our Transaction Price Index suggests that the Dubai property market bottomed out in April 2009 and has since rebounded by nine per cent, following a 30 per cent peak to trough drop.
"There appears to be several factors at play, including: improving sentiment and risk appetite; a negative real interest environment; steady volumes; and attractive rental yields."Attractive rentals in Dubai have added momentum to the overspill from Abu Dhabi, driven by the shortage as well as record high rentals, the report said.
"They have drawn back demand from the Northern Emirates, primarily Sharjah and Ajman. Former Dubai residents driven away by high rentals are returning. A similar trend was observed during the 2001 crisis, as rent in Dubai dropped to more attractive levels."
