(Adds Emaar’s email on sales)
DUBAI, Aug 4 (Reuters) - Dubai’s largest listed developer Emaar Properties’ second-quarter profit fell 7.4% as the Middle East financial hub’s property market continues to cool.
The emirate’s oversupplied residential real estate market, down by at least a quarter since the middle of 2014, is showing no signs of a recovery.
Emaar made a net profit of 1.37 billion dirhams ($373 million) in the April-June period, according to Reuters calculations based on a company bourse statement on Sunday, compared to 1.48 billion dirhams in the 2018 second quarter.
EFG Hermes estimated Emaar would make 1.55 billion dirhams in net profit.
Second-quarter revenue contracted 3.6% to 5.68 billion dirhams, Reuters calculated.
The developer of the world’s tallest tower, Dubai’s Burj Khalifa, said half-year profit fell 4% to 3.1 billion dirhams, the company said, and half-year revenue declined 4% to 11.57 billion dirhams. Half-year sales rose 52% to 9.4 billion dirhams. “The sales figures correspond to the residential units sold by Emaar during the first half of the year which underline the strong fundamentals for future revenue recognition,” the company said in an email.
“Revenue and profit on property development is recognised based on the incremental construction progress achieved on such projects subsequent to sales achieved.” Total sales backlog was 49.2 billion as on June 30, which Emaar said would be recognised as revenue within the next three to four years. ($1 = 3.6730 UAE dirham) (Reporting by Alexander Cornwell; Editing by Catherine Evans)