Dubai’s real estate powerhouse, Damac, is making waves with its impressive AED 67 billion ($18.3B) sales backlog as of December 2024! According to Moody’s Ratings, this solid pipeline ensures strong revenue visibility for the next 2-3 years—a major win for investors and homebuyers alike.
Financial Strength & Smart Strategy
Damac has built a reputation for high pre-completion payment collections, allowing it to fund construction without relying on project debt. This approach has earned the developer a credit rating upgrade from Ba2 to Ba1, reinforcing confidence in its financial stability.
Prudent Policies & Sustainable Growth
The company maintains a maximum debt-to-equity ratio of 50%, ensuring a balanced financial structure. Moody’s also highlights Damac’s cautious land acquisition strategy, keeping a land bank of only two years’ worth of planned sales—a smart move in Dubai’s dynamic property market.
What This Means for Dubai’s Real Estate Scene
With new plots frequently available, Damac minimizes the need for debt-funded investments, making its projects more sustainable and attractive to buyers. Plus, its self-sufficient liquidity management ensures that ongoing construction is fully funded by customer prepayments—a testament to its strong market positioning.
Damac is setting the stage for long-term success! Whether you’re an investor or a future homeowner, this is a developer to watch. What do you think about Damac’s strategy?
