The fortunes of property developers in Dubai and Abu Dhabi diverged last year.
Dubai’s Emaar Properties PJSC reported a 58% slump in profit, while Damac Properties PJSC posted its second consecutive full-year loss -- underscoring the impact of an oversupply aggravated by the coronavirus pandemic.
Aldar Properties PJSC in neighboring Abu Dhabi, however, performed better than Emaar and Damac. It posted a profit that was almost unchanged from a year ago as it benefits from government contracts.
A property glut and faltering demand have driven Dubai home prices down by more than 30% since the market peaked seven years ago, a decline made worse by the pandemic. The government last year set up a committee to manage supply and demand, while property developers temporarily halted new projects.
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