By Jason Benham and Amran Abocar
DUBAI (Reuters) - Abu Dhabi's Aldar Properties ALDR.AD saw land sale transactions pick up in the third quarter and expects the property market to stabilize next year, a top official said on Monday.
Shafqat Malik, Aldar's chief financial officer, told the Reuters Middle East Investment Summit the firm saw a modest rise in property sales in the first half of the year, at about 280 million dirhams ($76.23 million).
The company made no land sales in the second quarter.
"We started to see openings in the market, transactions are starting to happen," he said of land sales in the third quarter.
The firm's shares closed 2.1 percent higher at 6.44 dirhams.
"There could be some room for positive surprise in the third quarter numbers, if these anticipated land sales were completed during the third quarter itself, rather than falling into the final quarter of the year," said Sana Kapadia, vice president of equity research at EFG-Hermes in Dubai.
The firm's second-quarter net profit slumped 79.7 percent as it made no land sales.
"Consistent land sales in the following quarters, would suggest that Abu Dhabi's property sector is coming back to life," said Roy Cherry, vice president for research, real estate and construction at Shuaa Capital.
Shuaa Capital estimated a third-quarter net profit of 317.8 million dirhams for Aldar in a Reuters estimate earlier in October.
The property sector of the United Arab Emirates capital, home to most of the country's oil, has been more resilient to the global economic downturn, while neighboring Dubai has been hit harder.
House prices in Abu Dhabi are expected to fall 33 percent during the full year 2009 and are seen falling 3 percent in 2010, a Reuters poll showed earlier in October.
Malik said Aldar, which had primarily focused on high-end properties in the country's capital, was also ramping up activity in the lower to mid-range sector.
"The buying power of users is there," he said, adding the company had seen strong demand for one to two bedroom homes.
But Abu Dhabi will still see a housing shortfall of between 12,000 to 15,000 units next year, Malik said.
"What is built now, will barely satisfy the shortfall." Continued...
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