The latest sign and good news of the Dubai property market
recovery is the investment grade rating received by Emaar properties for the
first time in four years. Emaar Properties are the builders of world’s tallest
towers. They received the lowest invest grade “BBB-” from Standard and Poor
during the real estate bubble burst in December 2009. But now S&P has given
a BB+.
"The rating action reflects the sound performance of
Emaar's high-quality, Dubai-based leasing and hospitality assets, which
constitute a large share of total earnings," S&P said. "The
upgrade also incorporates Emaar's successful launch and presale of new
high-margin developments in Dubai."
In December 2013, Cluttons reported a significant growth in
residential values in Emaars Burj Khalifah. According to Knight Frank, Dubai’sproperty market is vastly recovering and the world’s largest increase in homeprices are growing by 35 to 40 percent this year. Emaar's new rating followed
property pre-sales, increase in recurring income and after the developer
converted bonds valued at $475.7 million into shares, according
to Bloomberg. Included in Emaar's $2.5 billion of debt outstanding, it has
a $500 million Islamic bond due in August 2016.
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