Are shares in Dubai’s Emaar Properties now a buy or a sell? « ArabianMoney

Are shares in Dubai’s Emaar Properties now a buy or a sell? « ArabianMoney:



"Profits at Emaar Properties grew by 21 per cent last year to almost $700 million as the Dubai developer cashed in on a real estate recovery and tourism boom. Annual sales were up 25 per cent to $2.8 billion with a 33 per cent surge in property sales driving the boost in revenues.



Residential property sales tripled to $2.3 billion with a raft of off-plan launches: The Address Residence Fountain Views I, II and III; The Address Residence Sky View and Burj Vista in Downtown Dubai; The Hills and Vida Residence in Emirates Living; and Palma and Rosa villas in Arabian Ranches.



Diversification



Retail and hospitality helped Emaar to remain very profitable even after the 2009 property crash in Dubai. But they are making a lesser contribution to the recovery, albeit revenues here were up 17 per cent to $1.3 billion. There’s talk of splitting off this division but that would undermine the benefits of diversification."



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