Leading real estate brokerage, Allsopp & Allsopp report a record number of client enquiries and revenue generation in a single month in twelve years.
The brokerage recorded a significant 64% revenue increase in January 2021 compared to January 2020 after a 22% increase in revenue generated in 2020 when compared to 2019 with an increase of sales transactions by 21%.
Lewis Allsopp says “2020 was a year of the unknown and the same can be said for 2021 but we have been surprised yet again. We received 38% more buyer enquiries and 24% more tenant enquiries this month when compared to January 2020 - over 5000 enquiries overall and the most we have had in 13 years in business. On the 26th of January we broke our record for the most revenue generated in a single month - it’s incredible how motivated buyers are and how quick the market is moving after such a turbulent year.”
Lewis Allsopp deemed the increase in loan to value the unsung hero of the real estate market in his CEO message in the Allsopp & Allsopp annual report. Allsopp & Allsopp Mortgage Services had a 498% revenue increase in January 2021 when compared to the same month in 2020. Of the property sales done in January, 88% of these were bought by first-time buyers with 93% of these taking advantage of the increase in Loan To Value (LTV).
Allsopp explains “The increasing number of first-time buyers entering the market since the increase in LTV is very encouraging and even more so that they are still emerging. It goes to show the confidence Dubai residents have in the city. It seems like the pandemic has encouraged people to make bold decisions with a ‘why not’ attitude - if they have the money to buy their first home, they are doing it and are right to do so! We reported an 8% increase in average property sale price in 2020 when compared to 2019 but we have to remember that prices are low in regard to what they have been in the past - some even lower than in 2008. Now is an ideal time to take advantage of these prices and the initiatives put in place by the government.”
Allsopp & Allsopp report that luxury property rentals are on the rise and a very quick start to the year with a record number of tenant enquiries.
Allsopp says “The lettings market suffered slightly as a result of the UAE lockdown and the pandemic with tenants succumbing to job losses and pay cuts encouraging them to re-negotiate their current rental contracts and in some cases, extending on a monthly basis. This had a negative impact on the leasing price of properties. Allsopp & Allsopp recorded a 9% decrease in average rental price of properties and an 11% decrease in rental transactions when compared to 2019. However, we are already seeing a recovery with a record number of transactions and tenant enquiries before we even finish the month.”
“We have had an increase in enquiries from tenants looking for luxury properties to rent. After a turbulent 2020, many tenants have entered the new year looking for a new start and a new home. Luxury rental properties on Palm Jumeirah and Jumeirah Golf Estates have been in high demand in January from people who have recently moved to Dubai and from residents looking to upgrade to a larger property with more bedrooms and outdoor space. With prices being low, people are taking advantage and snapping up these properties whilst they still can. Supply in the luxury market is low and we can see this having a slight effect on pricing if the property is of the highest quality.”