Dubai Real Estate Remain Stable in 2023
The international credit ratings specialists say growth will support strong cash flow, steady profitability, and improving credit metrics in a new report.
Mounting economic pressures globally, including rising interest rates, inflation, and the devaluation of emerging currencies, may cool the demand for residential real estate. This will lead residential real estate prices to stabilise in 2023.
Expectations
- Continued deleveraging and improving rating headroom for Dubai-based real estate companies in 2023.
- Ample liquidity and limited funding needs.
- Plentiful cash flow leaves headroom for higher capital expenditure, dividends, or acquisitions”.
Real Estate Developers & Rent
- Revenue growth will mainly come from new and recent sales.
- Developers have good revenue visibility for the next couple of years.
- Real estate rents will remain under pressure due to new supply.
Dubai’s GDP
- Expand by about 3% in 2023.
- Modest annual inflation of about 3%.
- Population will grow by 3 to 4%.
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