Damac Properties Report

Introduction

Damac properties is a development company dealing with properties based in Dubai, United Arab Emirates. It was established in 2002; however, it not until December 2013 when it was listed on the London Stock Exchange and the first real estate corporation from the Middle East. As of 2018 30th September, Damac properties have overseen and delivered over 24,000 homes, with a developmental portfolio of up to approximately 40,000 units that include more than 10,000 hotel rooms, along with apartments and villas (Damac Properties, 2019). Through the ability to manage various property setups, Damac properties have succeeded in acquiring a significant market share which comprises of both local markets and international market. In international operations, Damac properties operate providing leisure, commercial and residential with a corporate presence in the United Kingdom, Lebanon, Oman, Qatar, Saudi Arabia, among other location with the United Arab Emirates. In consideration to Damac properties market share price, even though the market share price may shift from time to times, it in most cases falls under the 1.00USD value. Also, in other settings, since it involves a series of events, it is essential to consider the overall market prices since they help in the definition of the property values and the general market prices of the properties.

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Market Price Analysis From 2014 To 2018

In the market price analysis on Damac properties from 2014 to 2018, there are various milestones evident. For instance, as of 2014, Damac had a net income of 4515million AED, and as of 2018, the company had a net income of 1150million AED. Thus, this occurrence suggests that the market prices on Damac properties are falling or are on a downward trend (Market screener, 2019).

The Impact of Oil Prices and Expo 2020 on Damac Properties Market Share Prices

For the companies based in the United Arab Emirates, there is a significant involvement between the oil price and the market prices of their services or products. An increase or higher oil prices are reasonable and productive in some of the companies while delivering a downward trend in others. In nations that have a high dependence on the oil and gas industry, the properties market share prices could suffer an impact. In this, the oil prices and expo 2020 deliver an impact on Damac properties market share prices. For example, in a case where oil demand slumps pushing for a decrease in costs due to overproduction, corporates need to slash their spending budgets during a phase of low oil prices to avoid loses. As a result, jobs could get lost which could result in employees leaving the oil-centric locations looking for other viable options. Hence, the cities left experience high volumes of properties available for retail and selling. As a result, the prices go down as well. Similarly, in cases of lower oil prices, Damac properties suffer a similar occurrence in their market share prices. Correspondingly, in case of oil prices increase, then Damac properties market share prices tend to also move on an upward trend.

Conclusion

In conclusion, the expo 2020 is also delivering significant impacts on Damac properties market share prices. With the new development and advancement in technology with the aim to modernize everything, the real-estate and properties sector is falling on a constant upward trend. However, there has been a price reduction in Dubai's property market prices thus depicting the price drop on Damac properties market share prices (Bagaeen, 2007). Moreover, the expo 2020 suggests that the trend will continue downwards until then.

References

Bagaeen, S. (2007). Brand Dubai: The instant city; or the instantly recognizable city. International Planning Studies, 12(2), 173-197.

Damac Properties. (2019). Discover your dream home with DAMAC Properties. Retrieved from https://www.damacproperties.com/uae/dubai-properties/#home

Market screener. (2019). DAMAC PROPERTIES DUBAI CO PSC: Financial Data Forecasts Estimates and Expectations | DAMAC | AED001301012 | Market Screener. Retrieved from https://www.marketscreener.com/DAMAC-PROPERTIES-DUBAI-CO-20127624/financials/