The Shams Abu Dhabi project on Reem Island is faring better than most major property developments under way in the capital after a sharp downturn that has hit companies across the sector, according to a report from Moody’s.
Overdue payments by developers to Sorouh Real Estate, the master developer of the Shams project, peaked at 2.81% this summer, said Khalid Howladar, a senior credit officer at Moody’s.
So-called delinquencies, which are defined as payments that are more than 45 days late, totalled 2.25% by July.
'With the collapse in property last September and the ongoing liquidity shortage, one would have expected an increase in smaller developer defaults on the land purchases,' he said. 'But so far the defaults in Shams are relatively low'.