S&P Predicts Strong Profits for Dubai’s Rated Developers Through 2026

Dubai, United Arab Emirates – October 29, 2025: Global credit rating agency S&P Global Ratings expects Dubai’s leading real estate developers to maintain strong profitability through 2026, supported by sustained price appreciation, robust demand, and solid financial foundations built over the past three years.

In its latest report, S&P noted that while Dubai’s property market is gradually moving toward equilibrium, most rated developers are well-positioned to absorb potential fluctuations in sentiment or sales performance.

Resilient Financial Positions Despite Global Headwinds

According to the agency, established developers continue to benefit from strong cash flows, high margins, and healthy balance sheets, which will help cushion any softening in the market caused by external risks such as geopolitical instability, global economic slowdown, or increased new supply.

“Dubai’s real estate market will remain strong over the remainder of 2025, driven by high price per square foot and robust demand,” S&P stated. The report added that residential prices have surged significantly since 2021, underpinned by both local end-user demand and rising international investor interest.

However, the agency also expects a moderation in growth rates as the market stabilizes:

“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,” said S&P.

Land Availability Key to Long-Term Developer Sustainability

Beyond pricing and demand, the report highlighted that long-term market sustainability will largely depend on access to reasonably priced land, particularly for private developers seeking to expand portfolios and maintain profit margins.

The availability of affordable land has become more limited following the 2024 merger of Nakheel, Meydan, and Dubai Holding, which consolidated a vast portion of Dubai’s prime land under a single government-owned entity.

S&P noted that this unified group is now positioned to play a strategic role in shaping future supply, influencing both pricing dynamics and development patterns across the emirate.

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

Continued Strength in 2025 and Beyond

Dubai’s property market has recorded exceptional growth over the past three years, with prices in key areas rising by double digits and transaction volumes consistently breaking records. Despite global economic uncertainty, demand for luxury properties and branded residences continues to drive momentum, especially from foreign investors seeking safe-haven assets and second homes.

Analysts believe that steady population growth, foreign capital inflows, and large-scale infrastructure projects will continue to underpin the sector’s resilience. Furthermore, strong developer governance, greater transparency, and the increasing institutionalization of the market have bolstered investor confidence.

S&P’s outlook suggests that while price growth is expected to normalize, profitability across Dubai’s major developers should remain solid and well above pre-pandemic levels, supported by disciplined financial management and diversified project portfolios.