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Dubai property sales price climbs in Q2
8 Aug
Property prices in Dubai have climbed by 17% in the second quarter of 2019 from the first quarter, broker Allsopp & Allsopp revealed.

Dubai’s real estate market also saw the average lettings price rise by 1% in that same period, the report showed.

Lewis Allsopp, CEO, described the sales price increase as "very encouraging for the market", following months of less-than-optimistic price results.

He said: "There have been quite a few ‘green shoots’ this year as well as a common perceptive that the market is either at or heading towards the bottom of the price curve.

"Whether our Q2 result is an indication of more positivity to come and the signalling of a price stabilisation or turn, only time will tell. What this is showing is that the average overall transacted price has risen, and this is the first we have seen of this in some time."

According to Allsopp & Allsopp, buyer registration has increased by 37% when compared to Q2 2018, and by 12% from the previous quarter, with transactions climbing 19%. Meanwhile, tenant registration soared by an annual 31% and by 16.5% when seen on a quarterly basis. Transactions increased by 3%.

“The increase in buyers and sales transactions reported in Q2 reflects my prediction that the prices are now at the bottom of the curve. This is due to a lot of end-users having reached their outstanding mortgage amount, meaning they cannot sell, or they will not be able to cover the outstanding mortgage. This is when we can expect to see resistance from sellers accepting anything lower, the market reaches the bottom,” Allsopp said.

Secondary market sales also reportedly grew by 23% when compared to Q1. Additionally, finance buyers increased by 35% while cash buyers decreased by 3%.

Allsopp added: “The increase in finance buyers and decrease in cash buyers is further clarity that end-user buyers are more prominent in the Dubai property market. The market has matured into more of a recyclable market that we see worldwide and is moving away from the need of the investors of 2006 to come and buy a building.”

Allsopp & Allsopp is a British-owned company that is settled in four offices across Dubai, being Palm Jumeirah, Jumeirah Golf Estates, Springs Souk Mall and Business Bay.

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