Dubai real estate market expected to cool amid global economic headwinds: S&P

Dubai real estate market expected to cool amid global economic headwinds: S&P

12 March 2024, Zawya

Dubai’s residential property market is expected to cool over the next 12-18 months due to increased supply and global economic pressures affecting demand, S&P Global Ratings said in a new report.

However, developers in the emirate have beefed up their cash balances due to record pre-sales over the past three years, improving their credit health ahead of the next cyclical slowdown, the report stated.

According to S&P, more than 85% of GCC-rated real estate companies are on a stable outlook, indicating the expectation of a steady operating performance.

“Close to two thirds of our portfolio is exposed to Dubai real estate, where stable outlooks (only one positive) indicate limited upside potential in the next 12 months, given our expectation of cyclical slowdown.”

In contrast, Abu Dhabi’s residential real estate market has not experienced the same rapid appreciation as Dubai. Consequently, the market in Abu Dhabi has not yet reached its previous peak cycle, suggesting a lower risk of reversal in comparison, the report said.

×

Hello!

Click one of our contacts below to chat on WhatsApp

× How can we help you?