Dubai experienced a remarkable 110 percent year-on-year increase in tenant registrations for rentals last month. Landlords responded by listing 91 percent more properties, indicating a shift towards a more landlord-friendly real estate market in the city, as reported in Allsopp & Allsopp’s latest market analysis.
The report revealed a substantial 99 percent surge in property viewings for rentals, contributing to an overall growth of 94 percent in rental transaction volumes during November. Tenants increasingly opted for four or more cheque flexibility, resulting in a 21.4 percent increase in options for 4+ cheques, constituting 31 percent of rental deals.
Villa rentals surpassed the market with a 58 percent annual increase, driven by family demand in both established and new communities. As tenants negotiated payment plans with landlords, opportunities emerged for both parties.
Dubai Real Estate Booms: Allsopp & Allsopp Reports 4% Surge in Sales Transaction
On the sales front, Allsopp & Allsopp reported a 4 percent higher transaction volume than in November 2021. Sellers capitalized on favourable conditions by placing 21 percent more properties on the market month-over-month. New buyer and investor registrations saw a significant 53 percent jump, highlighting interest in affordable ready and off-plan properties. Apartments priced below AED 2M remained popular among first-time buyers.
The average sales price per square foot reached AED 1,257, surpassing the previous market cycle peak in 2014 by 14 percent. Despite this surge, Dubai remains more affordable than London, Paris, and New York.
Allsopp & Allsopp’s report indicated that the current real estate market signals a “persistent undersupply” compared to sustained demand from buyers and investors entering 2024.
The company’s CEO, Lewis Allsopp, expressed optimism about the market’s future, stating that if 2024 avoids natural disasters or significant events, the Dubai property market will likely set new records well into the year, according to Arabian Business.
The firm anticipates the handover of 50,000 to 70,000 units in 2024, with demand for luxury residential communities expected to remain robust. The report concludes that sellers and landlords are poised to experience continued returns in the coming year.
