Page 77 - SOBHA REALTY PR REPORT NOVEMBER 2023

New projects

UAE homebuilders continue to launch new projects, with demand even stronger than
before the pandemic. New supply is steadily increasing as around 80,000 units

are under construction this year in Dubai and Abu Dhabi, according to real estate data

companies Reidin and JLL.

Global ratings agency Moody’s expects homebuilders margins will also improve in the

next 12-18 months.

“A number of developers have launched new projects in the past 18 months and off-
plan sales have picked up significantly since. This has led to a significant increase in
revenue backlogs across the board for developers,” Moody’s said, adding that the

launch of new projects, coupled with the increase in demand, has led to an increase in
gross margins across the board.

“UAE-based homebuilders are in a good position to capitalise on the growth
opportunities in their domestic market. We expect leverage and Ebit to interest expense
ratios to remain strong across the board. These companies continue to launch new

projects and collect the bulk of the cash flow ahead of project completions,” Moody’s
analysts said.

https://www.khaleejtimes.com/business/realty/dubai-heres-why-property-prices-will-continue-to-rise-
in-2024