Dubai-based property developer Nakheel made a net profit of AED1.55bn ($422m) in the first quarter of 2018, an increase of 5 per cent compared with the same period in 2017.

The handover of 200 land and built form units to customers together with the sale of the last available villas at its new Warsan Village community were the two main contributing factors to the profit. The developer says that its retail, hospitality and residential leasing businesses all continued to perform robustly.

“It has been an impressive start to 2018, with our first quarter results reflecting our ongoing delivery and diversification as per our business plan, and our key role in enhancing Dubai’s real estate sector – through a growing range of residential, retail and hospitality projects – in line with government goals,” says Ali Rashid Lootah, chairman, Nakheel.

Between 1 January and 31 March 2018, Nakheel signed construction contracts worth almost AED5bn. They include a AED4.2bn contract for Deira Mall at Deira Islands, and an AED385m contract for a 800-room beachfront hotel and waterpark at Deira Islands.

There was also construction progress at several Nakheel residential, retail and hospitality projects during the first quarter. The projects include The Palm Tower, Nakheel Mall and The Palm Gateway on Palm Jumeirah; Deira Islands Night Souk, Deira Mall, and the RIU and Centara resorts at Deira Islands; and Warsan Souk at Warsan Village.