Emaar merger to reshape Dubai property market

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The recently proposed merger between Dubai real estate developers, Emaar Properties and units of Dubai Holding Commercial Operations Group (DHCOG), will have big ramifications for the local market, ratings agency Moody's Investors Service said in a report on Tuesday.

"Moody's recognises that consolidating Emaar and DHCOG's real estate interests into one entity will create a new giant in Dubai's market, with unrivaled access to a sizable land bank," said Martin Kohlhase, an associate analyst in Moody's Corporate Finance Group based in Dubai.

"Furthermore, several drivers - such as the opening of Dubai's Metro (public transportation system), the inauguration of Burj Dubai (the world's tallest skyscraper) and the end of the school year/beginning of the summer period - will shape Dubai's residential property market in the near term and lead to greater differentiation within Dubai's residential areas, from which Emaar and DHCOG's real estate divisions may benefit," he added.