Nomura upgraded targets on property firms in the United Arab Emirates on Thursday in the expectation the stabilizing property market would pull stock prices out of their troughs faster than originally anticipated. Nomura upgraded price targets of Aldar, Deyaar Development, Emaar Properties, Ras Al Khaimah properties, Sorouh Real estate and Union Properties. Easing liquidity conditions following reports about the upcoming $10 billion Dubai government bond program, also boosted optimism, the bank said, adding that likely defaults of some private property developers might open the door for “vulture” investment in distressed assets. The first $10 billion tranche was sold to the central bank of the UAE, a seven-member federation including Dubai and key oil exporter Abu Dhabi. Dubai has not said when the second tranche will be issued but a ruling council member said on Friday it could be as soon as this month. The UAE's six-year property boom came to a halt last year, leading to delays and cancellations of multi-billion dollar development projects.
