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Abu Dhabi, UAEMonday 17 December 2018

Amlak completes construction of its Dh138m residential project in Dubai

The project in Mirdiff is the home financier's first real estate development

Off-plan residential sales in Dubai last year were at their highest level since the 2008 financial crisis, with their share of total transactions rising to 60 per cent in 2017 from 10 per cent in 2010. Sarah Dea / The National
Off-plan residential sales in Dubai last year were at their highest level since the 2008 financial crisis, with their share of total transactions rising to 60 per cent in 2017 from 10 per cent in 2010. Sarah Dea / The National

Amlak Finance, a Dubai-based mortgage lender, said on Tuesday it has completed the construction of its first residential development in the UAE as the Sharia-compliant company seeks to create new revenue streams.

The Dh138 million development in Dubai’s Mirdiff community, which spans over a 180,085 square feet area, comprises 54 villas that include four to five bedrooms units, the company said in a statement.

“This project is a testament towards our forward thinking approach and further strengthens our leadership position in the market,” said Arif Alharmi, chief executive of Amlak Finance. “Through such developments, we hope to continue to enhance the value of the UAE’s real estate market in addition to fulfilling our commitments to our financiers and shareholders.”

Dubai property prices weakened last year as an increasing supply of new units, a slowdown in the economy and subsequent job cuts dented demand. Developers in Dubai are expected to deliver 80,000 units by the end of 2019, according to a third quarter Dubai property report from broker JLL Mena.

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Sales prices of villas in the third quarter of last year recorded a 1.1 per cent year-on-year fall, according to JLL, while those of apartments declined 1.6 per cent from the same period in 2016.

Amlak’s third quarter net profit more than doubled to Dh11.8m after a reversal of impairment on Islamic financing and investment assets.

The firm said that its Islamic financing and investing assets rose to Dh7.1m in the third quarter compared to a loss of Dh5.3m in the same period last year due to what it said was an improvement in asset quality of its portfolio.