Annual growth of 12% at the end of the first half according to a report «Truth»Truth Consultancy
153.3 billion investment the main real estate companies
Abu Dhabi – Abdel Fattah Montasser
Real estate report Local revealed talk about the total investment real estate companies major public companies listed Psoqa Dubai and Abu Dhabi Securities rose to 153.3 billion dirhams at the end of the first half of 2016 compared to 137.2 billion dirhams at the end of 2015, growth of 12%, indicating that the new investments of this size corporate real estate sector amounted to 16.1 billion dirhams during the first six months of this year.
Reda said Mosallam general manager of the company «Truth» Economic Consultancy, which issued the report yesterday, said that the report also showed that the net operating income of the companies main real estate sector rose by the end of June to 5.08 billion dirhams compared with 4.68 billion dirhams at the end of June 2015 a rise of of $ 401.96 million dirhams growth 9%, indicating that the net profits of the major real estate companies registered Stock Exchanges Dubai and Abu Dhabi rose by 13% in the first half to 4.21 billion dirhams, an increase of 482.83 million dirhams, compared with 3.73 billion dirhams in the first half of 2015.
He added that «Truth» report stressed that the real estate companies in the UAE has strong financial liquidity can be used in various operations and that these companies have the ability to confront the dangers of repayment obligations traded snap without the need to liquidate any of fixed assets or obtain new borrowings proving that the proportion of Trading companies real estate rose from 1: 1.63 in the first half of 2015 to about 1: 1.70 by the end of the first half of 2015 while the typical rate of trading in this kind of activity is 1: 1, while real estate companies achieved a rise in the rate of return on capital, where the ratio was at 11.7% versus 11.6% during the first half of 2015 a reference to an increase in profits of real estate companies during the first half of this year.
The report said that the shareholders in the real estate sector companies rights recorded a rise at the end of June 2016 increased by 5.4 billion dirhams compared to the end of 2015, where she was AED 77.9 billion and increased to 83.4 billion dirhams at the end of the first half of 2016. The rise 7% a reference to the high capital and reserves in its various forms and retained earnings during the first half of this year compared to the end of 2015.
Reda Mosallam, explained that the report was based on a comprehensive and thorough analysis of the data audited to real estate sector specific companies that reflect the real estate sector in the UAE represented by six companies major sector included Aldar and Sunshine Properties and RAK Properties listed market, Abu Dhabi Securities Exchange and Emaar Properties and Union Properties and Deyaar real estate listed Dubai financial market, pointing out that the financial analysis for each company selected companies set up and prepare for the total sample companies for circulation to the real estate sector in the UAE financial analysis.
Muslim said that the company «Truth» Economic Consulting report, which dealt with the financial situation of public shareholding companies, the real estate sector in the UAE by the end of the first half of 2016 stressed the need to complete a series of legislations regulating the real estate sector to adjust and tighten the control on rents and sale prices of real estate units of residential, office and other areas determined prices which may be the acquisition of non-citizens of the state and the rights arising from it, organize and codify the work of real estate brokers accredited, and work to get out indiscriminate intermediaries who are hurting in this important sector.
The report called for action on the official concerned the real estate sector the state to issue reports and statistical indicators and research related to the real estate sector, the state on a regular basis to work on helping real estate developers in making their investment decisions better based on what the real estate market racked by all the Principality.
He stressed the need for the allocation of commercial land in all the Principality directed exclusively to build housing Average projects for low-income controls to ensure the allocation of land in suitable areas (unmarked) to build housing for middle-income and assigning develop that land for the construction of housing complexes, companies develop citizenship and be rooting land granted by the state value and the value of its development.
The report added that after rooting the value of the land is created private joint stock company, its shares are distributed to the citizens of each emirate is unable to grant the form of shares the purpose of that company or companies is rental units an economic return to be in the range of 3% – 5% per year after the recovery value of the land and the development of buildings to funding the government, pointing out that the purpose of this recommendation is to find practical and logical solutions to alleviate the burden of the level of rents unjustified and reduce the cost of the rent element which represents the ratio of not less than 40% of the average gross per capita income, as this recommendation provides an opportunity for the development of infrastructure infrastructure of the emirate concerned and the availability of investment projects before the citizenship development companies, thereby increasing demand for building materials and construction, which means supporting and promoting the economic development of the emirate concerned and therefore Ath.mugodat
According to the report rose traded for corporate real estate assets by the end of June 2016 compared to the end of 2015 by 24%. After that was 73.5 billion dirhams in December 2015 and rose to about 90.8 billion dirhams at the end of the first half of this year, a reference to the high investments in real estate companies with banks through the first half of 2016 compared to the end of 2015.
It has seen six major real estate companies listed locally an increase in total direct costs (sales) costs by the end of June 2016 compared to June 2015, where it was 4.7 billion dirhams and rose by AED billion to 5.7 billion dirhams at the end of the first half of 2016. The rise 21% in total return on equity amounts to about 5%.
Fixed asset turnover rate rose a ratio that reflects the ability of real estate companies to achieve optimum utilization of fixed assets have to achieve profit, and this percentage stood at the end of the first half of 2016, about 19.4% while the total net profit of the real estate sector companies listed on the sidelines Abu Dhabi and Dubai 34.7 % by the end of June 2016.