07 July 2015

The privately run developer is focusing on high-end residential projects in the GCC.

Dubai-based DAMAC Properties is looking to secure a competitive advantage in the GCC regions property sector by focusing on developing luxury hotel apartments and residential projects, said Managing Director Ziad El Chaar.

Thanks to those two sectors, Damac has made record sales and has been able to satisfy the market needs in this respect, he told TR Zawya.

Damac launched its golf course residential property, Akoya by Damac, in Dubai in 2013 and a second project, Akoya Oxygen, last August.

Total sales reservations for the Akoya by Damac project reached USD 1.9 billion, while those of Akoya Oxygen reached USD 1.1 billion until March 31, 2015, El Chaar said.

DAMAC Properties first quarter revenue jumped to AED 1.79 billion (USD 487.7 million) from AED 573,000 a year earlier, and net profits reached AED 792.9 million.

Commenting on the state of the Dubai real estate sector, El Chaar said it remains stable, registering annual profits between 6% and 8%.

Profits from the property market in Dubai are not subject to taxation, unlike markets in several developed countries, and this is an important factor in encouraging investment in this sector, he said.

Expanding its reach

Outside of the United Arab Emirates, Damac is developing two hotel apartment towers in the Saudi capital Riyadh, which are scheduled for completion in 2016.  El Chaar said the first tower would carry the luxury fashion brand Fendi, while the second tower was being developed in cooperation with Paramount Hotels and Resorts.

Last year, Damac completed the Al Jawhara Hotel Apartments in the Red Sea port city of Jeddah.

We also started to expand in Doha [Qatar] by building hotel apartment towers at the Lusail City Development, particularly along the districts sea front and Marina Lusail, El Chaar said.

In April, DAMAC signed a deal to acquire 20% of a 50-storey mixed-use tower to be built in London.

Listed on the Dubai Financial Market, Damac Properties is one of the major residential real estate developers in the Middle East. It focuses on developing luxury residences, commercial and multi-purpose buildings.

Zawya 2015