There are currently eight buyer enquiries for every new property listing as the sector switches to a seller’s market, according to a leading Dubai real estate broker.
Allsopp & Allsopp claimed buyers don’t have a lot of options in the market and urgency is being shown as prices are back on the increase.
The broker, which reported record-breaking revenue generation for January when compared to any other month in the company’s 13-year history, said buyers are signing on the dotted line a lot quicker than they previously would have through fear of missing out on a property they like.
Lewis Allsopp, CEO of Allsopp & Allsopp, said: “If you go back a year and a half, we were trying to convince buyers to look at properties as Dubai was in a buyers market. They weren’t keen to view as there was so much supply and with supply comes less urgency. If a property they like sold, they would simply find another property similar.
“However, we are now seeing multiple buyers for one property as there is little supply therefore creating urgency, and at times, driving the price upwards by means of outbidding each other.”
He added that Allsopp & Allsopp has waiting lists for certain properties meaning that those in high demand are selling before they reach property portals such as houza.com, the newly launched broker-owned website.
“What we are seeing is buyers are contacting agencies to find out what is becoming available – they are not waiting for properties to go live online. This is an encouraging sign for the Dubai property market and shows its maturity despite a global pandemic,” said Allsopp.
The brokerage said the LTV and low-interest rates are a common denominator when it comes to buyers having the ability to step onto the property ladder.
Allsopp explained: “First-time buyers make up 74 percent of our business at the moment due to the government stimulus package increasing the LTV and lowering interest rates – it has never been a more affordable time to buy.
“End-user buyers will consider paying more if they find a property that they like. Some are holding off on buying cheaper units and placing themselves on waiting lists hoping for the right property to become available and are willing to stretch their budget to the max.”
Allsopp & Allsopp also reports that the average sales price has risen in a number of areas across the city including The Springs and Victory Heights.
“Ready properties of high-quality finishes that are kept well are in high demand and with so much competition from buyers at the moment, we are seeing undersupply issues leading to property price increases,” Allsopp said.
His comments comes as new research reveals that Dubai’s secondary, or ready residential property market continued its recovery path with February recording the highest number of transactions in a single month since 2014.
The total number of property transactions year-to-date was 7,109 transactions, worth AED14.16 billion, where February had 3,814 transactions worth AED7.43 billion. This is up 15.6 percent from January in terms of volume and 10.2 percent more in terms of value, according to Data Finder, the real estate insights and data platform under the Property Finder group.
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