Dubai's Biggest Developer Can't Shake Off Real Estate Woes
Emaar Properties PJSC may have the backing of analysts but investors aren’t buying it, deterred by the gloomy prospects for Dubai’s real estate market. Shares of the developer of the iconic Burj Khalifa skyscraper have lost 39 percent this year, bringing its estimated price-to-earnings ratio for the next 12 months to the lowest level since late 2009. The valuation has prompted six analysts to update their view with either a buy or overweight recommendation. So far to no avail. A recovery of the local real estate market doesn’t appear to be happening any time soon with rival developers predicting a difficult year ahead. Demand is faltering as the oversupply has become more evident mostly in the residential market. Emaar Properties, the biggest listed developer in the United Arab Emirates, posted the lowest quarterly profit in almost three years in the period ended September. Meanwhile, the central bank said this week property prices decreased 7.4 percent in the September quarter from a year earlier.
Tags : INTERNATIONAL