UAE homebuilders are likely to prioritise cash conservation following the geopolitical shock in the Middle East," the agency noted.
"Immediate viewings have fallen, although the contractual backlog of pre-sales and purchasers’ escrowed cash should provide stability in the near term."
As for projects that are already substantially pre-sold, developers are likely to deliver them, as funds for these are already sitting in protected escrow accounts.
When it comes to completion dates, delays are likely not expected from agile companies despite supply chain disruptions.
However, when it comes to future project launches, developers are expected to scrutinise their plans because average selling prices may drop and the debt needed to start them is now riskier.
Source : Fitch
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@NoLimitGains This statement does not currently apply to the real estate market. While the ongoing conflict will undoubtedly have an increasing impact over time, the market's fundamental strengths persist.
The significant impact of the Strait of Hormuz closure on global supply chains is evident. Disruption affects modern technology and critical industries. Resolution of this geopolitical issue is imperative to mitigate widespread economic repercussions. 🌍🏭🚢
#IranWar#uae
My criteria for investing in Dubai are simple: community living, good location, and a government-backed developer. 🏡📍I'm glad It's proving to be a wise strategy, especially with current market dynamics.
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I've found villas and townhouses in Dubai consistently offer secure investments. They're resilient to external pressures. Many clients now want basements, so expect more designs with them in upcoming projects! 🏡💰🏗️📈
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Community-centric projects, such as Ghaf Woods, Dubai Hills, and Creek Harbour, are demonstrating remarkable resilience in the current market, with hardly any distress listings reported to date.
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