Looks like there are some property bulls left. Aldar Properties PJSC and Sorouh Real Estate PJSC, Abu Dhabi’s biggest developers, have been rated “buy” by Citigroup Inc. The rationale for the recommendation is that they trade at a discount to their net asset value. Citigroup estimated Aldar’s net asset value per share at
16.6 dirhams and Sorouh’s at 5.6 dirhams.
Citigroup argue that the current share prices of Aldar and Sorouh imply a property price collapse, zero developer margin and no future low-cost land grants.