Real estate companies: The slowdown follows three years of price gains in the United Arab Emirates, with the property market set to soften this year and early in 2016, according to Business Week. Economic growth will ease because of the decline in oil prices, said the ratings firm, which also noted volatile local stock markets. Residential property prices in the emirate may retreat between 10 per cent and 20 per cent, S&P said in a statement Monday. Real estate companies in the UAE are better armed to deal with the current slowdown and should be able to absorb it with limited ratings impact, S&P credit analyst Franck Delage said in the report. The emirate diversified economy, positive demographics and measures taken by local regulators since the crash should help prevent any repeat crisis, according to S&P. The UAE is home to about 6 per cent of the world proven oil reserves. Dubai teetered on the brink of default in 2009 after its property market crashed, wiping as much as 60 per cent off house prices since they peaked in 2008.
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Tagged under Real estate companies, Residential property topics.