Analysts said that Dubai residential prices have dropped about 25 per cent from a peak in 2014 and they estimate a contraction in the single digits this year.
Wednesday 10, April 2019
(Bloomberg) -- Emaar Properties, the developer of Burj Khalifa and Abu Dhabi-based Aldar Properties have gained this year as better than expected results and appealing dividends attract investors.
However, Damac Properties has extended its declines with more outflows on the radar.
Investors in the UAE’s stock markets are marking a clear distinction on how they see some of the biggest listed real estate companies weathering the stormy times ahead.
The UAE’s real estate stocks have been battered in the past two years amid increasing supply and faltering demand as lower oil prices hurt economies across the Gulf.
Selima Mrabet, a financial analyst at AlphaMena, said, “Emaar Properties and Aldar have entities tied to the local government as their main shareholders, both have succeeded in generating growth at the bottom of the cycle, but conditions are likely to remain difficult this year.”
“This move can only be sustained if it will be fuelled by good news and the market needs to restore confidence in the real estate sector,” Mrabet said.
Damac’s shares have declined 56 per cent in the past 12 months and in February the company posted its lowest annual profit since going public in 2013.
Mohamad Al Hajj, an Equities Strategist at EFG-Hermes in Dubai, said that the stock could be excluded from MSCI’s main benchmarks in a review next month as it fails to meet technical requirements.