Expect the UNEXPECTED: How Dubai's summer boom defied expectations
On this week’s episode of Taking Care of Business, join our Operations Director; Paul Kelly and our Managing Director; Marc Walters, to uncover the secrets of Dubai’s hottest summer through our Allsopp & Allsopp Q3 Market Snapshot. Get insights into how the property market performed this summer, and how this summer’s boom defied all expectations of the property market!
Let’s dive right into everything discussed throughout this podcast…
The busiest summer yet
The episode kicks off with Paul Kelly expressing how this summer has been the busiest he's experienced in 13 years, and Marc Walters, the Managing Director, agrees, stating that this is probably the busiest in 15 years for Allsopp & Allsopp.
Their assessment is based on the remarkable increase in transactions during July, August, and September. Q3 witnessed a 6 percent rise in transactions compared to Q2 and a staggering 38 percent increase year-on-year. Such robust activity during the typically slower summer months signals a significant shift in Dubai's real estate scene.
Possible reasons for the buzz
One reason behind the increased activity, Marc suggests, could be the growing number of people residing in Dubai during the summer months. Typically, summer in Dubai means fewer people due to the hot weather, but this year, it was different. Marc points out how this trend was mirrored in hotel occupancy, with fewer deals and lower availability.
However, in contrast to the congestion on the streets, the real estate business at Allsopp & Allsopp remained smooth. Marc attributes this partly to the location of their office. While summer usually sees a decline in business, they found that this year was exceptionally busy, both in terms of registrations, tenant inquiries, and property viewings.
Dubai's property market - A tale of two sides
Delving deeper into the data, the hosts discuss a notable discrepancy in the performance of property sales versus rentals. On the rental side, there was a 9.7 percent increase in Q3 compared to Q2.
Even more remarkably, there was a 37.5 percent increase compared to Q3 of the previous year, indicating a strong rental market. However, the sales side of the market showed a different story. Sales witnessed a 9.4 percent decrease year-on-year, with an 11.5 percent drop compared to Q2.
The standoff - What's happening?
Both Paul and Marc suggest that there might be a standoff taking place in the market, particularly on the sales side. The three-year speculative seller trend seems to be changing, and buyers may be hesitating due to inflated prices. This phenomenon might be contributing to a drop in sales.
Future prospects and off-plan market
As the episode wraps up, Paul and Marc share their anticipation for Q4 and discuss the surge in the off-plan market. The quarter saw substantial launches, including DIFC Living and Palm Jebel Ali, creating a significant buzz.
The hosts reflect on the changes in the market and the potential shift in dynamics between buyers and sellers. They emphasise the need to look at data by area, as different communities are experiencing varying trends. They are excited to see how the market will evolve in the next quarter.
In conclusion, the episode provides a comprehensive overview of Dubai's real estate market in Q3, touching on sales, rentals, and off-plan properties, offering valuable insights for anyone interested in the region's property landscape.
Curious to know more about how Dubai’s property market performed in Q3 2023? Take a look at our Allsopp & Allsopp Q3 Market Snapshot here.