The supply-demand imbalance remains a key driver of the continued negative outlook for the property industry in the Gulf region, Moody's Investors Service has said. In a new report released here on Monday, the rating agency said that the negative outlook reflects the rating agency's view of fundamental credit conditions in the industry over the next 12-18 months. In the report, Moody's noted that the other drivers of the outlook remain the same as in 2009, namely funding and the preservation of cash, which includes potential disposals of non-core assets, cash collection and debt standstill agreements.
"The supply-demand imbalance in commercial property and to some degree in residential units, depending on the city or country, is likely to grow worse as vast supply meets slack demand and is a major driver of our negative outlook," said Martin Kohlhase, author of the report.
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