Increases in profits of Emaar Properties and Aldar Properties, the two largest publicly listed developers in the United Arab Emirates (UAE), indicate a slight rebound in the Gulf state’s shattered real estate market.
Emaar Properties, the Middle East’s largest developer by market value, reported on Tuesday a 161-percent increase in net profits for the fourth quarter of 2011, which amounted to 716 million dirhams (about 193 million U.S. dollars). Although its full-year net profits declined 27 percent in 2011 to 1.79 billion dirhams ( 483 million dollars), investors pushed Emaar shares, which are listed at the Dubai Financial Market (DFM), up by 1.36 percent to reach a six-month high at 2.98 dirhams (0.8 dollars) on Tuesday.
Real estate prices and rents in the UAE dived 60 percent since the outbreak of the global financial crisis in 2008, according to Dubai-based real estate consultancy Asteco. But they showed some form of stabilization at the end of 2011 in the areas of high-end villas and flats affordable to blue-collar workers.
Emaar, the developer of the world’s tallest building, the 828- meter-high Burj Khalifa in the heart of Dubai, said in a statement that its hospitality segment played an increasing role in the revenue generation.