DUBAI: S&P Global said on Sunday it had raised its outlook for Emaar Properties, Dubai's largest listed developer, and its majority-owned Emaar Malls to stable from negative.

S&P said the outlook was revised as Dubai's residential real estate sector was gaining momentum, with prices rising in some areas for the first time since 2015.

"We expect a rebound in the company's earnings and credit metrics in 2021, with EBITDA likely to exceed AED8 billion (dirhams) and funds from operations (FFO) to debt to improve to about 30%," S&P said.

It kept a long-term issuer credit rating of BB+ for Emaar Properties, issuer credit rating of BB+ for Emaar Malls and its bbb+ stand alone credit profile for Emaar Malls.

Emaar Properties shares were trading up 1.2% on the Dubai stock market on Sunday.

S&P said it expected Emaar Properties would deliver about 6,000 units this year and close to 10,000 units in 2022, up from 4,800 in 2020.

S&P said first quarter data suggested Dubai's residential had bottomed out. It said overall prices had fallen at a low single digit rate in the first quarter, although prices of higher end properties had actually risen.

Sales of luxury villas, sea-view apartments and second-hand family houses have jumped this year as buyers take advantage of decade-low prices, easy financing and an economy open for business despite the COVID-19 pandemic.