August 4, 2014 / 11:32 AM / in 3 years

UPDATE 1-Dubai's Emaar second-qtr net up 29 pct despite dip in local home sales

* Emaar Q2 net 868 mln dirhams vs 675 mln yr-ago

* Analysts had forecast 839.8 million dirhams

* Home sales in Dubai dip in Q2 year-on-year (Adds details)

DUBAI, Aug 4 (Reuters) - Dubai’s largest developer Emaar Properties reported a 28.6 percent rise in second-quarter net profit on Monday, marginally beating forecasts, but revenue from property sales in the emirate dropped.

The builder of the world’s tallest tower Burj Khalifa made a net profit of 868 million dirhams ($236.3 million) in the three months ending June 30, compared with 675 million a year before, it said in a statement to Dubai’s bourse.

The outcome beat an average forecast of 839.8 million dirhams for the period.

Emaar’s earnings are seen as an key indicator for Dubai’s real estate market, which has recovered in the last two years after collapsing following the global economic crisis in 2008.

However, renewed speculative buying and new project announcements have pushed up prices, making them unaffordable to many and thus slowing sales, raising fears of another property market bubble.

Property consultant JLL said in its latest report that there had been a marked slowdown in the volume of residential sales in Dubai in the second quarter.

Emaar sold properties in Dubai worth 3.12 billion dirhams during the quarter, down from 3.29 billion in the same quarter last year, Reuters calculations showed, based on half-year figures.

The company’s revenue for the quarter dropped to 2.81 billion dirhams from 3.11 billion, the statement said. But revenue from its malls, retail and hospitality business grew by 12 percent.

Emaar Malls Group, a division of Emaar Properties, will look to sell a quarter of its shares to the public on the Dubai stock market when it lists later this year.

Shares of Emaar ended 3 percent up, before the announcement of the results. ($1 = 3.6730 United Arab Emirates Dirhams) (Reporting by Praveen Menon; Editing by David French and David Holmes)

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