Closing 2023: Redefining the word "records" in real estate
On this week’s episode of Taking Care of Business, tune in with Lewis and Carl for one last run of 2023, before we head into the new year, uncover how Dubai managed to hit an all-time high of nine years, and how Dubai’s property market performed in November according to Allsopp & Allsopp’s Monthly Market Snapshot.
So, let’s break it all down…
The average sales price breaks a nine-year record!
The episode starts with a focus on the remarkable achievement of breaking the previous record for the average sales price per square foot. November witnessed a 14% surge, reaching AED 1,257 per sq. ft., reflecting the sustained strength of the 36-month market growth cycle.
This also adds to how the market has been outperforming itself month-on-month. Not to mention, the market has seen a series of high sales, with new listings up 53%! They further dive into how Dubai is relatively the cheapest compared to other cities such as London, Paris, and New York.
The rise of market activity
Lewis and Carl delve into the robust 2.3% increase in total sales transactions across Dubai in November compared to October 2023. The off-plan sales market constituted 48% of sales, emphasising a return to familiar territory. Signals indicate that the property market will remain undersupplied heading into 2024, sustaining demand.
Is the sales market seeing stable patterns?
As the year concludes, stable growth patterns in sales activity for both villa/townhouse and apartment sectors are discussed. November witnessed a 4% increase in sales transactions compared to the same period in 2022, with motivated sellers capitalising on strong market conditions.
The rising demand for properties across Dubai
Lewis and Carl highlight the high demand for reasonably priced, ready, and off-plan properties, showcasing a remarkable 53% increase in new buyer and investor registrations compared to November 2022. However, they stress the importance of aligning pricing expectations to avoid potential mismatches.
The landlord’s market
Lewis emphasises the unprecedented demand in Dubai's rental market, with a 110% increase in rental tenants registering in November. Landlords responded with a 91% increase in rental property listings, while villa and townhouse rentals outperformed the market average.
To this, it comes in line with how landlords are actively capitalising on this, and offering more flexible payment plans too.
Lewis and Carl then discuss the evolving dynamics between tenants and landlords, noting increased flexibility with more payment options. In November, 31% of Allsopp & Allsopp rental contracts allowed for payments in four or more cheques, raising the question of whether this flexibility will be sufficient to retain current market rental rates into 2024.
The episode also touches on Allsopp & Allsopp's data-driven approach, providing insights into the market trends and discussing the firm's commitment to delivering exceptional service in the real estate sector.
Curious to know more about the November Market Report? Click here to check it out!
Until then stay tuned to Taking Care of Business, to know all things real estate, Dubai and beyond, every Friday!