 |
| A view from Dubai |
Last year 2019 was not good for real estate companies in Dubai. The overall total profits recorded a decline of about fourteen percent from the previous year 2018, which calls for most of the companies in the financial markets to review their securities, and limit the continuation of the projects that they are working on, and trying to find a way out of the crisis it went through, and is still, the market has not recovered yet, and expectations are for a slight recovery this year.
In detail, the decline in the overall corporate earnings in 2019 was 1.4 billion dirhams from 2018, when profits amounted to 9.7 billion dirhams, while in 2019 the figure was approximately 8.3 billion dirhams, the decline is a high percentage according to real estate measures.
Companies are between winning and losing
The decline was not general, as there were companies that managed to achieve profit and increase growth in 2019 over 2018, including Emaar Real Estate Company, which included Emaar Development’s profits to its profits, which gained an increase of 1.5 percent as well as the company, “Aldar” Real Estate Company whose profits increased by 6.9 Percent, while Manazel Real Estate Company achieved a growth of 4.7 percent.
By the numbers, as some newspapers reported, in the year 2019, Emaar gained 6.2 billion dirhams, and "Al-Dar" 1.984 billion dirhams, while "Manzil" gained 241.6 million dirhams.
As for the companies that could not get out of the loss situation, it is the "Al-Ittihad" real estate company, and "Damac", the first lost 218.8 million dirhams, and the second lost thirty-seven million dirhams.
Etihad Properties and Damac Properties moved from the profit-making phase in 2018 to the loss phase during the same period in 2019.
Lack of balance on the market
In general, the situation in the real estate market during the year 2019 was not positive in the whole world, as well as in the UAE for many reasons, the most important of which is the increase in supply and lack of demand and the increase in inflation and fears of a future crisis, especially with the trade war that escalated between the United States and China and then calmed down a little late in the year. This was accompanied by the insistence of most companies not to reduce prices to create a balance in the market, but that reflected negatively on them, so many people went to buy from them at reasonable prices due to the decline, which led to the weak marketing of these companies.
Despite the facilities provided by these companies in terms of payment methods, as well as banks in terms of mortgage loans, the problem remained.
Positive expectations for the current year
Experts are eager for the Expo organized by Dubai this year to have a positive impact on the market, reviving the economic situation and contributing to a lot of tourists visiting the country coming from different countries of the world.
