x

Abu Dhabi, UAESunday 24 June 2018

RAK Properties' earnings soar on increase in off-plan sales

Emirate's biggest developer posts 59 per cent second quarter net profit rise

RAK Properties, the emirate’s biggest developer, said on Thursday its second quarter net profit rose 59 per cent thanks to an increase in off-plan sales.

Net profit in the three months to June 30 reached Dh62 million compared with Dh39m in a year-earlier period.Revenue rose 44 per cent to Dh211m from Dh147m in a year-earlier period.

“RAK Properties attributes its outstanding half year results to strong off-plans sales backed by exceptional marketing support,” the developer said. “With proven excellence in a wide range of projects, the leading property developer is expected to announce additional residential, hospitality and retail projects to further its growth this year.”

At the Cityscape Abu Dhabi property exhibition in March, Mohammed Al Qadi, the chief executive of RAK Properties, said sales prices in Mina Al Arab complex had fallen 15 to 20 per cent since oil prices started to decline two years ago, but added that the cost of construction had also fallen.

Mr Al Qadi said rents had not fallen at its developments in RAK.

The Abu Dhabi-listed company is currently in the process of building two new hotels, the 305-room Anantara and the 350-room InterContinental at its 43 million square feet Mina Al Arab complex, as well as a 24-storey residential tower on Abu Dhabi’s Reem Island.