By Sam Bridge
Broker Allsopp & Allsopp says Dubai Marina most popular area for leasing while Downtown tops list for sales in 2019
Confidence is growning in the Dubai real estate market despite the negative talk surrounding it, according to property broker Allsopp & Allsopp.
The broker said it has seen its total revenue rise by 40 percent in 2019 compared to the previous year, moving more than 4,000 families into homes.
The company added that Dubai Marina came out on top for the most popular area for leasing for the second year in a row while the most popular area for sales in 2019 is Downtown Dubai.
Lewis Allsopp, CEO of Allsopp & Allsopp, said: "We have seen an increase in figures throughout the entire business which shows how much sentiment and confidence there is in the Dubai Property Market despite the negative talk surrounding it.
"Property prices dropping have given tenants the possibility of upgrading their property size or area and have given first-time buyers the chance to step onto the Dubai property market. Dubai saw 32,000 new residential properties handed over in 2019 an increase from the 21,014 in 2018 and there are expectations of an extra 49,000 properties handing over in 2020."
He said the Allsopp & Allsopp average sale price declined in 2019 which has acted as a stimulus for buyers who were on the periphery of the property market.
He added that tenant registrations have risen again this year by 14 percent, with the average rental price for 2019 falling a further 10 percent to AED132,000.
Allsopp said in a statement: "As a result of the attractive rental prices, we have had tenants registering to upgrade their homes, in line with this drop in pricing. Areas that may have been out of budget in previous years have been more achievable in 2019.
"Buyer registration has also increased by 22 percent in 2019 after we saw a decrease in buyer registration from 2017 to 2018. This rise is highly positive. The drop in pricing has encouraged many first time buyers into the market and even encouraged residents to buy second properties as an investment."
Allsopp & Allsopp said it has also seen an increase in companies paying for rental cheques during 2019.
Allsopp noted: "Companies paying for employee rental cheques is very promising as it suggests that companies are employing from overseas and are investing more in these employees. As Expo 2020 looms nearer, my predictions are that Dubai will see more companies paying for rental cheques in 2020."
The average age of Allsopp & Allsopp tenants has risen this year from 28 in 2018 to 44 in 2019 and buyers average age has risen from 40 in 2018 to 46 in 2019.
Lewis said: "The rise in the average age of clients could be a result of the UAE Cabinets introduction of long term visas providing families more security in the city. Professionals are more likely to move to the emirate knowing that they can settle without the worry of visa renewal after only three years."