HSBC Cuts Emaar's Price Estimate by 26% on Dubai Property Slump - Bloomberg Business

HSBC Cuts Emaar's Price Estimate by 26% on Dubai Property Slump - Bloomberg Business:

"HSBC Holdings Plc cut its price estimates for Dubai developer Emaar Properties PJSC and peers including Damac Properties Dubai Co., predicting falling revenue and declining property prices in the United Arab Emirates.
Emaar’s price estimate was slashed 26 percent to 8.5 dirhams, while Damac’s is 8 percent lower at 3.4 dirhams, HSBC said in a note on Thursday. The bank also lowered its target for Aldar Properties PJSC to 3.5 dirhams from 3.9 dirhams.
“U.A.E. developers have performed poorly, reflecting concerns over the macro environment in the country,” analyst Patrick Gaffney said in the note. “Residential property is likely to remain weak this year. We assume a 20 percent decline in the overall value of sales at both Damac and Emaar.”"



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