Dubai turning into a ‘landlords market’ as rentals surge 110% in 2023: Report – Arabian Business

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Dubai recorded a 110 percent year-on-year surge in tenants registering for rentals last month as landlords responded with 91 percent more listings, showing signs that the city’s real estate sector is becoming a more landlord-friendly market.

According to Allsopp & Allsopp’s latest market report, there was also a 99 percent jump in property viewings for rentals.

Buy/sell, rent/lease residential &
commercials real estate properties.

Overall rental transaction volumes grew 94 percent in November as tenants opted for four or more cheque flexibility. This saw options for 4+ cheques increase 21.4 percent, making up 31 percent of rental deals.

Villa rentals outpaced the market with a 58 percent annual surge, benefiting from family demand in established and new communities. As tenants squeezed landlords on payment plans, both sides found opportunities.

Sellers capitalise on surging Dubai real estate growth

On the sales front, Allsopp & Allsopp handled a 4 percent higher transaction volume than November 2021. Sellers maximised conditions by putting 21 percent more properties on the market month-over-month.

New buyer/investor registrations jumped 53 percent, underscoring interest in affordable ready and off-plan properties. Apartment prices remained below AED2 million, making them popular among first-time buyers.

Apartments priced below AED2 million remained popular among first-time buyers. Image: Shutterstock

Many real estate market records were set in 2023. The average sales price per square foot surged past the previous market cycle peak of 2014 by 14 percent, reaching AED1,257 per sq. ft. When compared to London, Paris and New York, Dubai still stands as the most affordable.

Dubai real estate market primed for further growth in 2024

The current indicators in the real estate market suggest a “persistent undersupply,” Allsopp & Allsopp’s report stated, in comparison to the sustained demand from buyers and investors entering 2024.

“While I cannot see into the future, if 2024 passes without any natural disasters [or] events the Dubai property market will continue to thrive,” said the company’s CEO, Lewis Allsopp.

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“Contrary to declining, it will likely set new records well into 2024, following its recent all-time high.”

The firm expects the handover of 50,000 to 70,000 units in 2024 with demand for luxury residential communities to remain robust “with sellers and landlords set to see continued returns through and through,” the report said.

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