According to S&P, the Dubai Housing Market is Unlikely to Have a ‘2008-style’ Catastrophe
According to S&P analysts, the ongoing regional armed conflict would not cause a market crash in Dubai similar to that of 2008. The ratings agency observed that some prominent developers have seen significant increase in presales in recent years and have a revenue backlog to fund it for several years.
Damac, Emaar, Omniyat, and Sobha Realty are the four developers evaluated by S&P, with the latter exceeding expectations and shifting from a negative to a stable outlook. However, analysts predict a minor slowdown in real estate volume, however this does not yet indicate a larger market collapse.
We aren’t seeing that happen just yet. The scenario has clearly raised concerns, but we are witnessing fewer transaction volumes,” Sapna Jagtiani, director and lead analyst of Corporate Ratings at S&P Global Ratings, said in a webinar on Wednesday.
She explained that some of these decreased transaction volumes can be ascribed to Ramadan, a time when markets are often calm and sales are projected to be down for the month.S&P’s base case scenario assumes the most likely scenario for the Middle East conflict, which is expected to last two to four weeks.
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