Dubai real estate saw a rise in first-time buyers in Q1; Market Report

By Ashika Rajan, Trainee Reporter
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UAE
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A recent property market report published by UAE-based property services company Allsopp & Allsopp has revealed that the first quarter of 2021 saw improved investor sentiment in Dubai’s real estate sector with a higher number of first-time buyers attracted by prices that “remained affordable but slowly on the rise.”

The report stated that since the first quarter of 2019, there has been an 82 percent rise in sales transactions and a 237 percent increase in tenants paying rent in multiple cheques.

The Allsopp & Allsopp report stated that “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.”

Mr. Lewis Allsopp, CEO of Allsopp & Allsopp pointed out that “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.”

The leading property services company reported that it had produced 50 percent of its 2020 annual revenue 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.”

Besides, Allsopp & Allsopp reported an increase in operation across all departments of the business.

Mr. Allsopp remarked that “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.”

“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,” Mr. Allsopp further added.

Mr. Allsopp stated that apart from an increase in end-user buyers, there is also an increase in residents purchasing secondary properties for investment purposes because they see an opportunity in some neighborhoods in the region. “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.”

The CEO said that his company is expanding its developer sales team as a result of more buyers enquiring about off-plan and newly ready units from developers due to insufficient inventory 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,” Mr. Allsopp added.

Gone are the days when companies paid their rent in one cheque. As a result of job losses or financial pressures, the brokerage reported an emerging tenant trend of short-term, month-to-month rental inquiries.

Related: Dubai Economy, DIFC unite to expand the UAE KYC


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