Global rating agency S&P expects most rated developers in Dubai will continue to post strong profits over the next two years, driven by price appreciation over the past three years. 

Well-established developers have sound financial positions that will mitigate a potential deterioration in sales and market sentiment, it said in a new report.

Risks to the emirate's residential real estate market include new supply, geopolitical escalation in the region, and a global economic slowdown, which could weaken market sentiment and regional demand.

According to S&P, Dubai's real estate market will remain strong over the remainder of 2025, driven by high price per square foot and robust demand. 

“We expect residential real estate demand and price growth to be on track to moderate over the next 12-24 months, as the market nears equilibrium,” the rating agency said.

However, S&P believes that the sustainability of the market for private developers depends on the availability of attractively priced land. 

In 2024, the merger of Nakheel, Meydan and Dubai Holding, which is jointly owned by the government of Dubai, created a single entity that now owns a significant portion of land in Dubai. 

“We expect the company will play a key role in supporting Dubai’s real estate market,” S&P said.

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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