Dubai Property Market recovery to take up to 2 years, says Damac boss

Hussain Sajwani also hails UAE leadership for putting country in a 'far better position for economic recovery'

Dubai's real estate market will take up to two years to fully recover from the impact of the coronavirus pandemic, according to Damac chairman Hussain Sajwani.

Following a meeting of the board of directors to approve the developer's financial results for 2020, Sajwani also praised the leaders of the UAE for putting the country in a "far better position for economic recovery".

In a filing to Dubai Financial Market on Wednesday, Sajwani said: "2020 was indeed a challenging year for the global economy, with the travel and tourism industries particularly hit due to the Covid-19 pandemic.

"With the smart leadership of the UAE, we are in a far better position for economic recovery, although I still believe it will take 12-24 months for the real estate industry to fully recover.”

Sajwani, pictuered below, added: “I truly thank our leaders for all the support they have given the UAE business community during these trying times and I also want to thank our stakeholders who have help us achieve great things over the years, including our employees, partners, contractors, suppliers and, of course, our customers who have contributed to the success of Damac.”

The board approved the company's 2020 results which included total revenue of AED4.7 billion compared to AED4.4 billion in 2019. Booked sales for the period stood at AED2.3 billion, down from AED3.1 billion in 2019 while the developer made a net loss for the year of just over AED1 billion compared to a loss of AED37 million in the previous year.

Total assets stood at AED21.1 billion compared to AED23.8 billion.

In its DFM filing, Damac also said: "The lasting effects of Covid-19, which has devastated economies across the globe, has understandably impacted the profit margin at Damac. With global lockdowns, travel restrictions and the dip in global travel, Dubai's property market has been adversely affected."

As of the end of December 2020, gross debt stood at AED3.2 billion and cash and bank balances stood at AED4.2 billion, the company added.

Last year, Damac said it delivered about 3,000 units in Akoya and Business Bay developments in Dubai. During the year, Damac also reached the milestone of crossing 32,000 unit deliveries since inception.