Developer Damac acquires Dhs 1.26bn of land near Dubai Canal

Dubai-based developer Damac announced that it has acquired land worth Dhs 1.26bn in the emirate.

The plots are located close to the upcoming Dubai Canal project, on the eastern and western sides of Sheikh Zayed Road.

The purchase will add around four million square feet to Damac’s existing land bank, it said.

The acquisition was done through the company’s subsidiary, Damac Properties Development.

Damac recently announced a 30 per cent rise in 2015 net profit to reach Dhs 4.51bn, up from Dhs 3.48bn in 2014.

It reported a healthy net cash position of Dhs 5.74bn, with revenues at Dhs 8.54bn.

The company said it completed 2,600 units last year, including some at master development Akoya in Dubai.

“The Dubai real estate market is at a consolidation point in the cycle and the rapid growth witnessed in 2012-2014 is now behind us,” said chairman Hussain Sajwani.

“However, this market creates opportunities for well capitalised and experienced companies like ourselves with a strong track record.”

Sajwani stressed that market conditions were very different to the property crash in 2008. Stakeholders had learnt their lesson, he added.

Earlier this year the company’s managing director Ziad El Chaar said he is ready “go on TV naked and resign” if the Dubai real estate market crashes as predicted.