The prospects for growth in the Dubai residential sector over the next year remains strong, says rating agency Standard & Poor’s, which has given Dubai developer DAMAC a ‘BB’ long-term corporate credit rating
The outlook over the next year for Dubai’s property market, which has seen annual price rises of up to 50%, is strong, says rating agency Standard & Poor’s (S&P)
The prospects for further residential growth are positive and residential property is set to retain its appeal for investors, says Standard and Poor’s.
S&P’s assessment is contained in a ‘BB’ long-term corporate credit rating of Dubai-based developer DAMAC and its recently-issued sukuk notes.
“Growth prospects for Dubai’s residential property segment appear to us to be positive in the next 12 months, thanks to population growth and an increasing number of visitors, which are likely to absorb the increasing supply of new developments and support average selling prices.
“We anticipate that residential property will retain its appeal as an investment class in the region. In our base-case scenario, we do not foresee an oversupply of residential properties in Dubai in the coming 12-18 months.”
Standard and Poor’s explains the rating reflects its assessment of DAMAC’s business risk profile as “weak” and its financial risk profile …read more