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 “ 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. 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.”
He added that residents are buying second properties for investment purposes and interest from overseas buyers is rising, 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 ($607,000) in 2020 to $794,000 in 2021.
Lewis Allsopp says “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.”
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 brokerage also reports an emerging tenant trend of short-term, month-by-month rental inquiries as a result of job losses or financial strains.
Allsopp says “Post-Covid-19 lockdown we had many inquiries 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.”