UAE Homebuilders Prioritise Advanced Projects as Property Market Slows

Dow Jones
08/19

1417 GMT - U.A.E. homebuilders are prioritising larger projects that are already well advanced in funding and completion as the property market slows, Fitch Ratings says. Residential transactions fell 19% on quarter in the second quarter, with new launches also much lower. Larger developers such as Emaar and Majid Al Futtaim are better positioned to pursue this strategy because they can launch large developments and release units in stages, Fitch says. Smaller developers could find it harder as land, construction and financing costs remain high. The ratings firm expects fewer headline launches, larger project sizes and longer delivery schedules if current trends persist.

 

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