Aldar Properties PJSC (ALDAR) rose for the first time in more than a week on bets property stocks in Abu Dhabi will catch up with their peers in neighboring Dubai.
The shares, which were the second-most traded on the benchmark index, added 3.2 percent, the first increase since April 22, to 4.15 dirhams by the close in the emirate. Real estate companies Eshraq Properties Co. (ESHRAQ) and RAK Properties PJSC (RAKPROP) also advanced today, gaining 3.3 percent and 0.8 percent respectively. The ADX General Index climbed 0.3 percent.
Developers in the United Arab Emirates’ capital have advanced 48 percent in 2014, lagging a 54 percent rally for those in Dubai, data compiled by Bloomberg show. Property companies in the nation are benefiting from a resurgence in the real estate market and improving economic growth.
“Abu Dhabi real estate has underperformed Dubai peers by a fairly good margin,” Nayal Khan, head of institutional sales and trading at Naeem Holding in Dubai, said by phone. “It seems like a good time to start looking at some of these names.”
First-quarter profit at Aldar, scheduled for release on May 7, will probably more than double to more than 320 million dirhams ($87 million) from 154 million dirhams a year earlier, according to estimates from Naeem Brokerage and Securities & Investment Co. compiled by Bloomberg.
Gross domestic product in Abu Dhabi will grow at an average 5.7 percent per year through 2016, according to government forecasts. The ADX has rallied 18 percent in 2014, about a third of the DFM General Index’s 51 percent gain, the best performance among 94 global gauges tracked by Bloomberg.
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