Emaar Properties PJSC, the developer of the tallest tower in Dubai, said revenue from apartment sales plunged 86 percent in the third quarter amid weak property demand in the Persian Gulf emirate.
Income from apartment sales dropped to 183.3 million dirhams from 1.34 billion dirhams a year earlier, according to Emaar’s financial statement posted on Dubai’s stock market today. Revenue from sale of villas jumped to 126.4 million dirhams from 30.4 million dirhams. Emaar posted third-quarter earnings on Oct. 27 and provided a breakdown of revenue today after trading in Dubai's market closed.
Emaar, United Arab Emirates’ biggest developer by market value, was hurt by a more than 60 percent slump in property prices in its home market as speculative demand waned and banks tightened lending since mid-2008. The company reported a 34 percent decline in third-quarter profit as revenue declined and property delivery slowed.
Revenue from hospitality business advanced 14 percent 224.5 million dirhams, while rental income increased 21 percent to 526 million dirhams, according to the statement.
The developer plans to borrow $700 million and build a commercial center in its Eighth Gate development in Damascus, Chairman Mohamed Alabbar told Dubai TV on Oct. 24. The shares gained 0.4 percent to 2.67 dirhams in Dubai trading today, paring its lose this year to 25 percent.