The reality of Dubai’s property availability does not match reports the market is oversaturated says leading Dubai realtor.
Allsopp & Allsopp CEO, Lewis Allsopp, said: “Claims there is an oversupply of property and too many developments in the pipeline are patently false, as we are already beginning to see demand outstrip supply as the availability of listed properties for sale continues to decrease.”
“Dubai’s year-on-year population growth of seven percent requires at least 75,000 new properties coming online each year. New developments becoming available is essential to support the growing population.”
Many developers have either slowed down construction or delayed the launch of new projects this year. With demand continuing at peak levels and continued low supply, Mr. Allsopp predicts this will lead to an increase in property prices.
“Under current market conditions, we’re regularly seeing desirable properties at an achievable price receive multiple offers from buyers. This shows the real strength of the market and has the combined effect of keeping supply tight, demand high and, as we’re starting to see, prices increasing.”
Allsopp & Allsopp’s buyer registration and sales data shows many people are still buying, with February recording the highest sales volume since the company started in 2008, and a 62 percent increase in buyer registration on the same month in 2015.
“Oversupply would be the first thing to show the market is in trouble but the fact is we are facing the exact opposite scenario – we’re actually struggling to find units for the demand. Thankfully the developers are aware of the current situations and we still have properties due to come online this year despite some projects being held up.”
Mr. Allsopp points to online property sites such as Dubizzle and Property Finder adding to the misconception there is an oversupply in the market.
“A quick search online shows 214 properties listed on Dubizzle for Al Reem Villas, Arabian Ranches, however when we look into what is actually available for sale and then funnel it down to what you can actually move into as an end user today, there are only 16 properties available to view. So only seven percent of what is listed on the property portals is really available to move into today”.
“Likewise in Dubai Marina, where we have just over 1500 owners who have advised they would like to sell or are thinking about selling registered on our books. However we only actively have and are ready to move on a total of 108 units as these are the only apartments that ready for an end user to move in. You then would need to dwindle this down to location, price range, developer and aesthetics of the property before a buyer is left with a choice of only a handful of properties they would realistically consider.
Allsopp & Allsopp’s February sales figures show 52 percent of the properties it sold last month were on the market for less than two weeks.
“The reality is, even if there is a lot of units being built, there still isn’t a lot of choice for the end-user.”
Allsopp & Allsopp CEO,
Subscribe to receive news and updates
Be the first to get the most market news, videos and the inside scoop on property in Dubai