The two biggest property developers in Abu Dhabi, Sorouh Real Estate and Aldar Properties, have seen profits decline notably in the fourth quarter, underscoring that the effects of the global credit crisis have begun to impact on real estate in the emirate.
Since the end of summer, layoffs and delays have become the industry standard in the Dubai property sector, but Abu Dhabi was seen as largely protected from the turmoil. Now, with sales slowing to a near standstill and property prices declining, developers are taking a closer look at their plans and focusing on construction.
“Both developers now see that the important thing is to have the resources to execute in today’s environment,” said Sana Kapadia, an analyst at EFG-Hermes. “You probably won’t hear about them selling much in 2009, but they will continue to recognise revenue as they deliver units.”
Sorouh, the second-largest property developer in Abu Dhabi, yesterday said its quarterly profits fell 94 per cent to Dh46 million (US$12.5m) in the final three months of last year. The announcement came a day after Aldar, the largest developer in the emirate, said its fourth-quarter profits had dropped 89 per cent to Dh84m, after taking a strategic decision to move its focus away from selling.
Not only dubai property market but also all property market all over the globe has fallen.Business people has hard time in rising funds through their property.Investors are encourged to invest more in this period.
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