Union Properties profit fell by half in 2016

Dubai-listed Developer also sees revenue drop by 23 per cent to Dh1.13 billion.

Union Properties has announced a 51 per cent decline in full-year profits for 2016 to Dh211.4 million, from Dh434.6m in 2015.

The company filed preliminary financial results on the Dubai Financial Market showing that revenue declined by about 23 per cent to Dh1.13 billion compared with Dh1.47bn in 2015.

In a brief statement accompanying its accounts, Union Properties said that it had managed to increase the size of its total asset base by Dh138m during the year to Dh8.43bn. It also said that shareholders’ equity increased by 4 per cent to Dh216m.

During the year, the company kicked off its Dh450m Oia Residences project in Dubai Motor City, holding a groundbreaking ceremony in May alongside its appointed contractor China State Construction Engineering Corporation (CSCEC).

The CSCEC Middle East president Yu Tao told The National that the project, consisting of 269 apartments, is on a fast-track schedule.

“The project is now coming to the completion of the structure. I think that by the end of this year the whole project will be handed over. We are very satisfied with the performance of our team,” he said.

Union Properties is also expected to start work on its delayed five-tower Vertx scheme in Motor City later this year.

Speaking at the Cityscape Global conference in September, general manager Ahmed Al Marri said it plans to restart the project by "the middle of 2017".

A report published this week by property broker Chestertons indicated that apartment prices in Dubai dropped by 3 per cent year-on-year in 2016, and villa prices fell by 6 per cent. On average, rents fell by 3 per cent across the city during the year.

“Real estate prices dropped at a slower rate during 2016 as the ripple effect of global and economic uncertainty continued to impact the market in Dubai. We expect this to continue into the first half of 2017 and prices to remain flat,” said Robin Teh, the UAE country manager for Chestertons Mena.

Follow The National's Business section on Twitter