‘One cheque rents’ on way out as Dubai landlord power wanes
A Dubai-based real estate broker has said it has seen a rise in buyer and tenant registration despite continued reports of oversupply in the local property market.
Allsopp & Allsopp said buyer registration in the first quarter of 2019 is up by 20 percent with sales transactions seeing an 18 percent increase while tenant registration has jumped by 55 percent with rental transactions seeing a 75 percent surge.
The realtor said a 6.5 percent population rise in Dubai since March 2018 to 3.1 million is “slowly but surely matching the property supply”.
The real estate company also reported a trend of more tenants paying in multiple cheques and a decline in one cheque demands, with 73 percent of rental transactions paid in multiple cheques.
Lewis Allsopp, CEO, said: “We have heard oversupply as far back as 2006 in regard to the Dubai property market when the Jumeirah Beach Residence units were handed over. These apartments were, of course filled quickly and Dubai went on to build hundreds of thousands of more units, which, in time have filled. As long as the population continues to increase, demand will come.”
Allsopp added: “More buyer and tenant registrations reflect more confidence in the Dubai property market and Dubai as a whole. People are moving to Dubai to better their career in a city which offers the opportunity to do so.”
He said that for those who decide that Dubai is the place for them, typically in 3-4 years tenants will look to make a step onto the Dubai property ladder, adding: “This is exactly what we are seeing with the increase in buyer registrations. Tenants are taking advantage of the drop in pricing that has taken place over the last couple of years in the city and buying their first homes.”
According to the company’s data, the average age of tenants and buyers fall between 31-45 years old but statistics for Q1 have revealed an increase in 18-30-year old’s buying and renting property within Dubai.
Allsopp said: “The increase in millennials buying and renting in Dubai is very positive for the city. Millennials are known for being more care-free and of the renting generation with less importance being put on buying a home.”
As well as an increase in sales and rentals, Allsopp & Allsopp also reported a rise in property management portfolios of 42 percent compared to Q1 2018, with mortgage transactions experiencing a 130 percent surge in the same period.
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