Property Pundits
reflect on Dubai’s real estate market’s shift towards the seller’s market
The recent scenario of Dubai real estate market showcases
growth and a dynamic transition to the seller’s market largely because of the
exceeding of buyer enquiries than the existing and new supply. Property Pundits
state that this ratio have been disturbed by the buyer enquiries outnumbering
the new supply despite the pandemic-enforced slowdown.
Property
Consultancy Company Dubai, Allsopp and Allsopp states in this
regard, “Ready properties of high quality finishes that are kept well are in
high demand and with so much competition form buyers at the moment, we are
seeing undersupply issues leading to property price increases.”
Dubai stands in the midst of seller’s market in accordance
with the, Allsopp and Allsopp’s current ratio of buyer enquiries to new
properties which stand at 8:1.
An analyst from Allsopp and Allsopp said, “Buyers don’t have
a lot of options in the market and urgency is being shown as prices are on the
increase and have been doing so for the last few months. They are signing on
the dotted line a lot quicker than they previously would have through fear of
missing out on the properties they like.”
The CEO of Allsopp and Allsopp elaborated in this regard,
“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 were not keen to view as there
was so much supply and with the supply comes less urgency. If the property they
liked was sold, they would find another similar property. However, we are not
seeing multiple buyers for one property as there is little supply, therefore
creating urgency, and at times, driving the pace upwards by means of outbidding
each other.”
The company revealed that it has a waiting list of buyers
for some particular properties for sale in Dubai. This shows that these properties have a high demand and
are selling prior to their listing on property portals like houza.com.
In this case, the real estate brokerage reported a
record-shattering revenue generation for the month of January 2021. This stands
the highest than any other month in the company’s 13-year long history. The
buyers of today are seeking help of e-loans which enables them to take one step
forward on the property ladder.
Allsopp and Allsopp also reported that the buyers are
willing to pay more today for the property they like with only few of them
waiting on the right properties to become available that fall in their budget. The
report concluded on the note of Dubai property’s market dynamic shift towards
the seller’s market.
