Allsopp & Allsopp Real Estate’s total revenue has increased by 22% since 2019. This is the 11th consecutive year that the company has reported a growth in revenue generated annually.
Lewis Allsopp, CEO of Allsopp & Allsopp says “Despite the roadblocks we have faced this year, we have increased the company’s revenue and also increased the Allsopp & Allsopp headcount by 38%. Dubai’s lockdown put a spanner in the works and no one could have foreseen what the future held but the property market sprung back into action and has gone from strength to strength since. This meant that we were able to surpass our yearly target earlier than anticipated in September and set a new target for Q4 that we were delighted to achieve.”
Allsopp & Allsopp Real Estate’s buyer registration increased by 28% compared to 2019, despite the total number of properties registered decreasing by 3% and as a result, the average sale price rose by 8%.
Allsopp explains “Some sellers are now under the impression that if they wait to sell, they could achieve a higher sale price in the near future. No one can predict the future, but what we have seen post lockdown is a slight incline in average sold price which is due to the high demand for certain properties within certain communities.
Buying has never been more affordable with the increase in Loan to Value (LTV) brought in by the UAE government as part of the stimulus package teamed with the low-interest rates given by the UAE Central Bank. The LTV was the unsung hero when it comes to the successes of the Dubai Property Market in 2020. These changes brought in by the UAE government have meant that first-time buyers could enter the market and as a result, we have seen mortgage transactions rise by 38%.”
He continues “Buyers are entering the market and in some cases, willing to stretch their budgets higher to be in with a chance of buying a property that ticks all their boxes, however, the LTV increase and low-interest rates may not be around forever and we can't be sure that first-time buyers will always be in such a fortunate position to buy. In my opinion, 2021 will be a very interesting year for the property market. We have already seen increases in prices across certain areas of the city, whilst other areas have stabilised and some dropped, but at a much slower rate than before. The property market in Dubai is continuing to evolve and mature; we can no longer talk about the property market as a whole, instead, we have to look at different segments of the market.
Allsopp & Allsopp real estate sold many properties in 2020 before they reached property portals.
Lewis Allsopp explains that this is down to the number of buyers registered looking for new homes “Buyers have been looking specifically for a certain property type and a property that is in great condition, meaning that when such property becomes available, we have buyers registered to buy right away. In some cases, we have buyers stretching their budgets to be able to get the exact property they are looking for because the competition in the market is strong.”
The company reports a decrease in viewings by 57% but an increase in sales transactions by 21% as a result of client calls increasing by 43% and an increase in website bookings for property valuations and viewings by 61%.
Allsopp explains “2020 showed us that the real estate market needed to improve technology and quickly! Before lockdown was introduced Allsopp & Allsopp were conducting 360-degree tours of properties and virtual viewings - this took precedent throughout the lockdown and has continued to be popular with clients since. I believe the ongoing virtual viewings are the reason the number of viewings has decreased by a large margin this year. No viewings took place during the lockdown, but since, we have seen virtual viewings continue with clients who are overseas or who are looking to narrow down their search before a physical viewing to save time on their physical search.”
Allsopp & Allsopp Real Estate’s tenant registration rose by 6%, however lettings transactions have decreased by 11%.
Lewis Allsopp says “The beginning of 2020 saw many tenants stay put as they made decisions for their future and as the lockdown was enforced, we saw contracts being extended for around two-three months because of the circumstances. After lockdown, the rental market, like the sales market, took off! After being locked down for so long, many people decided to move to villas from apartments, to upsize for more space or downsize after pay cuts or job losses as a result of the pandemic. However, many other tenants have taken advantage of the high LTV and low-interest rates available and have stepped onto the property ladder. This is another reason for the increase in sales transactions and the reduction in rental transactions. Considering the rental market came to a halt this year, the reduction, when compared to a relatively normal 2019, is reflective of a very busy second half to the year.”
The Dubai population has risen this year by only 2% compared to an increase of 5% in 2019. He adds “The population rising by only 2% this year, in my opinion, is as a result of the restrictions on travel, so growth itself is a huge positive. Considering the population growth has not been as much as previous years, shows the sentiment of Dubai’s residents and could have had something to do with the decline in rental transactions. But to have sales transactions up by 21% with such a minimal rise in population suggests that many buyers in the market are end-users and chain buyers either upsizing or downsizing their properties - making Dubai their permanent residence.”
He continues “Investors are also seeing great opportunities in the Dubai property market. The way the UAE has dealt with the pandemic from the get-go has instilled further confidence in the government to make difficult decisions for the betterment of the country.”
Source: Allsopp & Allsopp