Allsopp & Allsopp Real Estate, Dubai’s leading brokerage reports that they have generated 50% of their 2020 annual revenue generation in Q1 of 2021. Despite the pandemic starting to take effect in 2020, the revenue generated for the full year was itself an impressive 19% higher than that of 2019.
The brokerage also reports an increase in activity across all departments of the business.
Lewis Allsopp, CEO of Allsopp & Allsopp says “Q1 of 2021 has been incredible for Allsopp & Allsopp and the Dubai real estate market as a whole. Coming out of Lockdown so quickly, the investment in vaccines and testing, mixed with the city not being straddled with debts to pay back in the future has created a firm foothold for Dubai's continued growth which will accelerate it beyond the growth of other major cities in the world. This has encouraged many expats already residing in the city to buy homes here and invest in their future and also encouraged many overseas investors.
I believe there will be many people moving to Dubai over the next few years to leave their home countries, due to the rise in interest rates and clawbacks for countries to help recover, and with Dubai not sitting on any debt from the pandemic I can see the city continuing its push to be the leading destination in the world.”
Allsopp & Allsopp have seen a rise in sales transactions by 82% and mortgage transactions by 63% when compared to Q1 of 2020.
Allsopp explains “Buyer sentiment has never been higher. The leadership of the UAE has shown such forward thinking and have executed plans quickly and precisely for the betterment of the city. New visas have been implemented making it easier for expats to call the UAE home and the groundbreaking decision to introduce dual citizenship is adding a huge amount of confidence amongst the expat community.
We are very much still seeing the effects of the increase in loan to value (LTV) and low interest rates. These two factors combined are encouraging many first-time buyers into the market and with prices still remaining affordable but slowly on the rise, buyers are jumping at the chance to purchase a home whilst they still can.
As well as end-user buyers, we have seen residents buying second properties for investment purposes as they can see the opportunity that is arising in certain communities across the city. We have also had a lot of interest from overseas buyers who are looking to make the move to the UAE or have been encouraged by the UAE’s resilience throughout the pandemic and its plans to continue to grow and advance with the launch of the Dubai 2040 masterplan.”
The real estate brokerage reports an increase in average sales price by 31% from AED 2,227,172.55 in 2020 to AED 2,912,671 in 2021.
Lewis Allsopp says “The rise in pricing we can see in certain communities across Dubai is down to demand and supply. With the vast number of buyers entering the market, there simply aren't enough properties to go around. When a property comes to the market at the correct price point and good quality condition, they are very rarely being put live on property portals as we already have a number of buyers on waiting lists ready to buy. This means that buyers are willing to stretch their budget in order to get the property they want - especially when they find themselves in competition with likeminded house hunters.”
Allsopp continues “We are expanding our developer sales team as a result of more buyers enquiring on off-plan and newly ready stock from developers as they face limited stock in the secondary market. I predict we will see this continue throughout the year with the number of developments launching and the attractive payment options available.”
Allsopp & Allsopp have seen a rise in rental transactions in Q1 2021 with a particularly significant 237% rise in tenants paying their rent in multiple cheques compared to Q1 of 2020.
Lewis Allsopp explains “Pre-Covid-19, we were seeing more of a trend to increase cheque payments and the lockdown accelerated that. Some owners are now asking for fewer cheques again but overall more owners are appreciating that they need to offer increased cheque payments to keep up with the trends across the city - the increased competition amongst landlords and more short-term lettings options in the market. With Dubai increasing in popularity, companies are no longer needing to offer packages with property rentals included - gone are the days that companies pay for rent in one cheque.
The brokerage reports an emerging tenant trend of short-term, month by month rental enquiries as a result of job losses or financial strains.
Allsopp says “Post-Covid-19 lockdown we had many enquiries from residents looking to rent on a short-term basis, so much so that it prompted us as a business to open up a short-term lettings department. The pandemic has changed the lives of many people and tenants and landlords alike are now less inclined to commit to yearly contracts. We have noticed that tenants are looking into their options, making sure they are safe in their jobs before committing to a tenancy contract where they are locked in for a year. Landlords are becoming more inclined to let their property short-term for some of the same reasons. They are looking for flexibility with their property and in some cases steering away from a locked in a contract where a year's notice needs to be given before they can sell the property.”
Allsopp & Allsopp’s buyer viewing numbers only rose 7% since Q1 of 2020 despite the significant rise in buyer enquiries.
Lewis Allsopp explains “We are certainly seeing buyers and tenants viewing less. With virtual tours on many of the properties we see on property portals, buyers and tenants are using these to their advantage to save time. Virtual tours are a great way to save time and narrow down a property search - this is happening now and I feel this will continue to happen as we move past the pandemic. Those looking for a new home are simplifying the process for themselves by ruling out areas and properties based on doing a bit of their own due diligence before they start the viewing process, so when it comes physical viewings they have very few and it then turns into a shortlist rather than blindly viewing multiple properties in multiple areas.”