DUBAI (Reuters) - Dubai’s largest listed developer Emaar Properties (EMAR.DU) said on Sunday third quarter net profit jumped 20% despite a prolonged slowdown in the emirate’s property sector.
A supply glut has slowed the market for most of the decade, apart from a brief pick up more than five years ago, sending prices down by at least a quarter since 2014.
Emaar made 1.3 billion dirhams ($362 million) in net profit in the July to September period, compared to 1.1 billion dirhams a year ago, the company said in a bourse statement.
Arqaam Capital estimated the developer would make 1.2 billion dirhams, while EFG Hermes estimated 1.3 billion dirhams.
Revenue rose 14 percent to 6 billion dirhams.
Emaar said it has launched 19 projects across its mega developments in Dubai in the nine months of the year, with a total project value of 10.1 billion dirhams.
The company has booked 12.6 billion dirhams in sales over the same period, up 25% compared to a year ago, it said.
DAMAC Properties (DAMAC.DU) Chairman Hussain Sajwani has accused a large rival of “dumping in the market.”
He told Reuters on Oct. 17 developers need to stop launching new projects for up to two years to stabilize the sector.
Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum announced in September the formation of a planning committee tasked with regulating the sector.
Emaar, which is nearly a third owned by Dubai’s state fund, is a member of the committee.
Reporting by Alexander Cornwell; Editing by Elaine Hardcastle