Real estate listings in Dubai have increased 21% quarter-on-quarter, but sales transactions are down 16% in Q2 2021, compared to the previous quarter, according to the Allsopp & Allsopp Real Estate Q2 report.
However, year-on-year figures look positive with the emirate witnessing an increase in sales transactions by 109% YoY in Q2 2021, with an average sales price increase of 35% compared to Q2 2020.
Commenting on the real estate trends, the chief executive officer of Allsopp & Allsopp, Lewis Allsopp, said: “The decrease from Q1 is to be expected, after the surge at the beginning of the year. This surge wasn’t sustainable. The reason behind the plateau is the emergence of ‘speculative sellers’. Sellers saw prices increase in the first three months of the year and are now ready to place their property on the market.
“This has resulted in some communities having more listings and as a consequence, buyers are taking more time to purchase a property or being more bullish when it comes to negotiating due to having more choice in the market.”
The traditional real estate brokerage reported a 67% increase in buyers registering their interest in properties in Q2 2021 when compared to Q2 2020, but a 14% decrease since Q1 2021.
Allsopp explained: “The slight decrease in registrations from Q1 has a lot to do with residents travelling. With people perhaps being in Dubai for around 18 months without travelling internationally, we are seeing many residents travelling earlier than previous years as a result of some countries opening their doors to tourists.
“People are also having longer holidays as they navigate through traffic light systems in order to get back to their home countries.”
The top three buyer nationalities reported by Allsopp & Allsopp for Q2 2021 are British, Indian, and French. This is a debut for French buyers in the top three.
Allsopp added: “Investors are coming to Dubai to buy property as they fear governments in European countries are pumping so much money into the economy that many Europeans are wary that taxes may rise in the near future as a result.
“Dubai has been very forthcoming with plans for the future with the announcement of the 2040 Master Plan and the fact that Dubai is tax-free is a big pull for expats and investors and we are seeing a rise in European interest more recently.”
The leading real estate brokerage reported a 49% increase in mortgage transactions with 61% of buyers purchasing properties through the company with a mortgage.
“More than 60% of people who buy properties through Allsopp & Allsopp are doing so with a mortgage,” Allsopp said. “People move to Dubai and they build a life here creating an ecosystem for the real estate market – an ecosystem that is getting stronger and stronger and I believe will soon be on par with that of the UK.
“Business set-ups are rising and well known, global companies are setting up hubs in…