THE second-quarter earnings from Dubai-based property and construction companies fell short of expectations, in a sign the battered sector’s problems have further to run, according to a Reuters report.

Dubai’s second-largest property developer by market value Deyaar reported its third consecutive quarterly loss while Union Properties swung to a loss.
Contractor Drake & Scull’s profit almost halved, the report said.
Deyaar made a loss of Dh243 million ($66 million) in the three months to end-June, compared with Dh76.4 million a year ago.
EFG-Hermes had forecast a net profit of Dh19 million for the quarter.
Deyaar said it continued to maintain a conservative approach, taking ‘significant’ provisions in the quarter.
“There’s a financial stalemate with the banks – banks aren’t giving project finance or mortgage finance and until that happens, I can’t see the property market improving drastically,” said Chet Riley, a property analyst at Nomura.
House prices have plunged some 50 per cent since the global financial crisis hit, resulting in billions of dollars in project cancellations and thousands of job cuts, while oversupply has dampened hopes of a quick turnaround in prices.
Deyaar plans to hand over five projects in 2010. While Deyaar is relatively well capitalised with a small debt burden, its strategy post-2011 is unknown, Riley said.
Contractor Drake & Scull International, which is focusing on winning contracts outside its home market, saw its second-quarter net profit slashed by nearly half to Dh44.5 million.
After a 66 per cent rise in first quarter net profit, Union Properties returned to a loss of Dh349 million in the second quarter, according to Reuters calculations.
EFG Hermes had forecast a net profit of Dh33 million for the quarter.
First half net loss stood at Dh299.13 million, due to non-cash provision against valuation of properties, reflecting property market conditions, the company said, adding it will focus on completion and handover of two properties in Dubai during the remainder of the year.