Dubai real estate encountered a stronger investor sentiment in the first quarter of 2021 with an expanded number of first-time buyers entering the scene baited by costs that “remained affordable but slowly on the rise.”
Allsopp & Allsopp Real Estate Q1 property market report provides that an 82 percent raise in deals and a 237 percent rise in tenants paying their rent in multiple cheques since Q1 2019.
“The first quarter of 2021 has been incredible for the Dubai real estate market as a whole. Buyers are jumping at the chance to purchase a home while they still can with the city coming out of lockdown so quickly on the back of investment in vaccines and testing,” the report said.
“This has encouraged many ex-pats already residing in the city to buy homes here and invest in their future and also encouraged many overseas investors,” said Lewis Allsopp, CEO of Allsopp & Allsopp.
The leading brokerage reported that it had generated 50 percent of its 2020 annual revenue generation in Q1 of 2021. “Despite the pandemic starting to take effect in 2020, the revenue generated for the full year was itself an impressive 19 percent higher than that of 2019.”
The brokerage also provided that a rise in activity across all sectors of the business.
“I believe there will be many people moving to Dubai over the next few years as they leave their home countries. I can see the city continuing its drive to be a leading destination in the world,” said Allsopp.
“The buyer sentiment has never been higher. The leadership of the UAE has shown such forward thinking and has executed plans quickly and precisely for the betterment of the city. New visa rules have been implemented, making it easier for ex-pats to call the UAE their home while the groundbreaking decision to introduce dual citizenship is adding a huge amount of confidence among the ex-pat community,” he said.
He said the market is witnessing the effects of the increase in loan to value (LTV) and low-interest rates.
Other than an increase in end-user buyers, there is also a rise in residents purchasing second properties for investment purposes as they can witness the opportunity that is arising in certain communities across the city, he said. “We also witness a lot of interest from overseas buyers who are looking to make the move to the UAE or have been encouraged by the UAE’s resilience throughout the pandemic and its plans to continue to grow and advance with the launch of the Dubai 2040 master plan,” said Allsopp.’
Allsopp provided that his firm is expanding its developer sales team as an outcome of more buyers enquiring on off-plan and newly ready units from developers as they see limited stock in the secondary market.“I predict we will see this trend to continue throughout the year with several new developments being launched and the attractive payment options available.”
“Pre-Covid-19, we were seeing more of a trend to increase cheque payments and the lockdown accelerated that. Some owners are now asking for fewer cheques again but overall more owners are appreciating that they need to offer increased cheque payments to keep up with the trends across the city – the increased competition among landlords and more short-term lettings options in the market,” said Allsopp.
Gone are the days when organizations pay for lease in one check. The business detailed an arising occupant pattern of short-term, step-by-step rental inquiries as a result of job losses or financial strains.