Wednesday 19 October 2011

Emaar Q3 profits to drop 33%, reckons Rasmala - Emirates 24/7

The UAE property sector continues to undergo a price correction that began in late 2008, and there remains a downside risk to property prices in both Dubai and Abu Dhabi, according to Dubai-based regional investment bank Rasmala.

In a note outlining third-quarter results preview for the country’s real estate and construction firms, Rasmala said it expects property prices “in both Dubai and Abu Dhabi to fall about 20 per cent more to reach a sustainable trough.”

For market benchmark Emaar Properties, Rasmala analysts “expect a seasonally soft quarter, as we forecast revenue from both recurring income portfolio and property sales will decline 5-6 per cent quarter-on-quarter and pro forma earnings will decline 3.4 per cent quarter-on-quarter.” The bank is forecasting net profits of Dh408m for Emaar, a 33.4 per cent decline from comparable last year's actual results.

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