Paul Kelly on the Business Breakfast: Is rental relief on the way?

This morning on Business Breakfast with Brandy Scott, Operations Director Paul Kelly from Allsopp & Allsopp took centre stage to shed light on the current state of Dubai's real estate market throughout October. The focus of the conversation was the October Market Snapshot, revealing intriguing insights into rental trends and the overall property landscape.

So, let’s dive right into everything discussed.

Rental pulse:

Paul began by setting the stage, sharing that the average rental price for October was AED 177,000. This figure encompassed a divergence between villas and townhouses at AED 283,000 and apartments at AED 131,000. Notably, both segments experienced month-on-month price increases, with villas/townhouses rising by 2.8% and apartments by 3.6%.

Rising demand:

The discussion swiftly turned to the surge in property viewings, a staggering 77% year-on-year increase in the number of rental applicants. The cause? Dubai's population boom and the resulting demand for housing, something we have all noticed when we are navigating the city's bustling roads.

Signs of relief for renters:

A glimmer of hope emerged as Paul delved into key indicators of potential rental relief. A substantial 96% uptick in property listings during October, coupled with a 13% increase from the previous month, hinted at an influx of supply into the market. Interestingly, a shift towards four-plus check payments suggested a nuanced aspect of tenant affordability, potentially paving the way for future relief.

Geographic dynamics:

Dubai's urban landscape was a focal point, with Paul highlighting the expansion into suburban areas such as DAMAC Hills, JVC, Tilal Al Ghaf, Villanova, and Ranches. The data mirrored the city's outward growth and the corresponding increase in available properties.

Landlord strategies:

A noteworthy revelation was the changing stance of landlords, with approximately one-third now open to accepting four checks. This strategic shift, according to Paul, stems from a desire to remain competitive in a market marked by heightened supply.

Sales market overview and predictions: Shifting gears to the sales market, Paul provided a snapshot of 6,552 transactions in October, with the secondary market claiming a dominant 79%. He attributed this imbalance to a potential administrative backlog resulting from a flurry of launches in September. Looking ahead, predictions hinted at the possibility of surpassing the record average price per square foot in the sales market, underlining the market's resilience.

The intricate dance between supply, demand, and evolving landlord strategies paints a promising picture, offering a glimpse of potential relief on the horizon for renters in the ever-evolving Dubai property market.

Want to watch the interview? Click here.

Curious to know more about the property market? Check out our October Market Snapshot.