The real estate market of Dubai showed a good interest of investors in the first-quarter of the year 2021. It increased the number of first-time buyers with their affordable prices. The prices are affordable, but rising at a slow rate.
According to Allsopp & Allsopp Real Estate, the properties in Q1 of the year showed an increase in the sales transaction with 82 percent. And, the 237 percent rise in the tenants who are paying their cheques since Q1 of the year 2019. As per the words of Lewis Allsopp, CEO of the company,
“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.”
In addition to this, there report says,
“The first quarter of 2021 has been incredible for the Dubai real estate market as a whole. Buyers are jumping at the chance to purchase a home while they still can with the city coming out of lockdown so quickly on the back of investment in vaccines and testing.”
In addition to this, a leading brokerage reported that the market has generated 50 percent of its 2020 annual revenue generation in the first quarter of the year 2021. “Despite the pandemic starting to take effect in 2020, the revenue generated for the full year was itself an impressive 19 percent higher than that of 2019.” It further reported about the rise in activities across the departments of the business,
“I believe there will be many people moving to Dubai over the next few years as they leave their home countries. I can see the city continuing its drive to be a leading destination in the world.”
“The 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 rules have been implemented, making it easier for expats to call the UAE their home while the groundbreaking decision to introduce dual citizenship is adding a huge amount of confidence among the expat community,” Mr. Lewis Allsopp said.
The CEO further said that the real estate market is showing the effects of the rise in loan to value (LTV) and low interest rates.
Other than the rise in end-user buyers, there is a rise in residents who are interested in buying second properties for the purpose of investment as they can see the chance that is arising in some selected communities in the city, he added, “We also witness 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 master plan,” said Allsopp.
Allsopp also said that his venture was expanding its developer’s team of sales because a result of more buyers inquiring on off-plan and recent ready units from developers as they face limited stock in the secondary market. “I predict we will see this trend to continue throughout the year with several new developments being launched and the attractive payment options available.”
“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 among landlords and more short-term lettings options in the market,” Allsopp stated.
Those days do no longer exist when companies paid rent through cheques. The brokerage reported an emerging tenant trend of short-term, month after month rental inquiries as a result of loss of job or financial strains.
Source: Khaleej Times
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