Latest news with #LewisAllsopp
Khaleej Times
3 days ago
- Business
- Khaleej Times
Dubai homeowners renovate villas, townhouses as prices double in 3 years
Sellers in Dubai are renovating their older villas and townhouses to take advantage of strong demand as the average price has nearly doubled in the past three years. 'Since May 2022, the average villa and townhouse prices have skyrocketed by a remarkable 92 per cent, climbing from Dh3.475 million to Dh6.682 million in just three years. Even within the last year alone, these properties have seen a significant 35 per cent increase in sales price across villa and townhouse communities. This is a clear indicator of sustained demand, limited supply, and growing investor confidence in villa and townhouse communities in Dubai,' said real estate agency Allsopp and Allsopp, quoting Dubai Land Department (DLD) data. 'The Dubai real estate market is not just growing; it's redefining investment benchmarks, especially for villas and townhouses. Imagine nearly doubling your investment in just three years; that's the reality for villa and townhouse owners in Dubai. "The under-supply of quality homes, particularly ready and upgraded villas, continues to fuel this growth. Buyers want space, established communities, and turnkey homes they can move into immediately which is exactly what communities like Arabian Ranches, Jumeirah Golf Estates and Victory Heights have,' said Lewis Allsopp, chairman of Allsopp & Allsopp. Upgrading older villas, townhouses Dubai's property market has seen massive demand, especially for bigger units such as villas and townhouses soon after the outbreak of the pandemic. The restrictions on the people's movement by the authorities to contain the pandemic prompted residents to look for bigger units, pushing demand and prices of villas substantially higher. Dubai Land Department (DLD) reported Dh54 billion in property sales transactions in May, an impressive 11 per cent increase from the previous month. According to Asteco's latest data, 6,375 villas were handed over in 2024 and 2,750 in the first quarter of 2025. It is expected that 14,600 villas will be handed over by the end of 2025. The real estate agency noted that sellers are increasingly recognising the potential in renovating older properties, as these modern homes within their community now command significant prices. 'We're now seeing more sellers upgrade and list their homes as the demand for bigger, newly renovated properties grows. Many of Dubai's older homes offer unmatched space, with buyers opting for modernised and renovated homes rather than taking on the time and effort of upgrading themselves,' said Lewis Allsopp.
Arabian Business
3 days ago
- Business
- Arabian Business
Dubai real estate: Villa,townhouse prices soar 92% in three years as property market booms
Dubai Land Department (DLD) recorded AED 54 billion in property sales transactions across Dubai in May, representing an 11 per cent increase from the previous month. Villa and townhouse prices have increased by 92 per cent since May 2022, rising from AED3,475,523 to AED6,682,023 over three years. These properties saw a 35 per cent price increase within the last year alone across villa and townhouse communities, according to DLD data. Investors flock to Dubai 'The Dubai real estate market is not just growing – it's redefining investment benchmarks, especially for villas and townhouses. Imagine nearly doubling your investment in just three years – that's the reality for villa and townhouse owners in Dubai. The undersupply of quality homes, particularly ready and upgraded villas, continues to fuel this growth. Buyers want space, established communities, and turnkey homes they can move into immediately which is exactly what communities like Arabian Ranches, Jumeirah Golf Estates and Victory Heights have,' Lewis Allsopp, Chairman of Allsopp & Allsopp said. The city's secondary property market demonstrated strength last month, with total sales value surging 68 per cent year-on-year and average resale home prices rising 32 per cent. Secondary market transaction volume increased 28 per cent year-on-year, indicating a move towards homeownership for expats settling in the city. The off-plan sector maintained confidence with a 13 per cent increase in average sales price month-on-month and a 20 per cent rise year-on-year. Buyers continue to view Dubai as a destination for capital appreciation and long-term investment, driven by the city's growth, new businesses, tourism appeal, and residential attraction. DLD reported a month-on-month decrease in rental renewal volume (19 per cent) and value (17 per cent), whilst new rental contracts strengthened with volume increasing 15 per cent and value rising 9 per cent month-on-month. This suggests tenants are exploring suburban areas for properties amid ongoing rental price increases in prime locations. Established, older neighbourhoods are experiencing renewed interest, particularly for well-upgraded homes. Sellers are recognising the potential in renovating older properties, as these modern homes within their communities now command higher prices. 'We're now seeing more sellers upgrade and list their homes as the demand for bigger, newly renovated properties grows,' Allsopp said. 'Many of Dubai's older homes offer unmatched space, with buyers opting for modernised and renovated homes rather than taking on the time and effort of upgrading themselves.' The data reflects the value of investing in Dubai's property market, particularly in the villa and townhouse segment. As Dubai continues attracting high-net-worth individuals and long-term residents, demand remains strong for homes that offer space, lifestyle, and move-in readiness.
Arabian Business
02-05-2025
- Business
- Arabian Business
Dubai real estate: Off-plan property sales surge 47% year-on-year in April
Dubai's off-plan property market recorded significant growth in April, supported by sustained interest from international investors and local buyers seeking new developments, according to Allsopp & Allsopp. According to the Dubai Land Department (DLD), the total real estate transaction value in April reached AED46 billion. This represents a 77 per cent increase compared to April last year and a 23 per cent rise from the previous month. Dubai off-plan surge Off-plan transactions drove much of this growth, with a 47 per cent increase in transaction value and a 29 per cent rise in volume year-on-year. These figures underline continued demand for properties under development. Off-plan sales accounted for 59 per cent of all transactions in April. 'Whether you are an investor or a homeowner looking to diversify your portfolio, the off-plan market is where the real opportunity lies,' Lewis Allsopp, CEO of Allsopp & Allsopp said. Allsopp & Allsopp reported a 99 per cent increase in year-on-year sales transaction volume, outperforming the wider market. Sales transaction value rose by 143 per cent compared to April 2024. The secondary market also showed strong activity. The average property price rose by 23 per cent month-on-month, with total transaction value increasing by 41 per cent. Year-on-year, secondary sales grew by 111 per cent in value and 68 per cent in volume. The segment accounted for 57 per cent of the total transaction value in April, with off-plan contributing 43 per cent. Villas and townhouses led the market in terms of price growth. Average values rose by 34 per cent month-on-month, while transaction volume more than doubled with a 110 per cent increase year-on-year. Apartments also recorded a 32 per cent year-on-year rise in average prices. 'We are witnessing a clear trend towards homeownership in Dubai with more individuals recognising the city as a stable and attractive place to settle and invest long-term, not just in villas but also in apartments,' said Allsopp. 'Where previously buyers may have rented before purchasing, many are now skipping that step and directly purchasing properties, drawn by the high-quality offerings of new developments,' he added. Rental transactions, meanwhile, declined. The DLD reported a 24 per cent decrease in rental volume in April. Allsopp & Allsopp noted a 9 per cent fall. This suggests a shift in preference towards property ownership. As demand continues, developers are expanding offerings to remain competitive. 'Developers are raising the bar and becoming increasingly competitive, offering world-class amenities and community-focused living spaces that are attracting strong buyer interest and fostering long-term loyalty,' Allsopp said.
Hi Dubai
18-04-2025
- Business
- Hi Dubai
Dubai Rents Show Signs of Decline in Select Communities After Double-Digit Increases
Dubai's rental market is showing signs of stabilisation after years of sharp increases, driven by population growth and strong post-pandemic demand. While rents remain high in prime areas, the overall pace of increase has slowed, with some communities even seeing modest declines. Industry experts agree that the era of double-digit rent hikes is over. Lewis Allsopp, chairman of Allsopp & Allsopp, noted an 8% month-on-month decrease in average rental prices across apartments and villas. 'Apartment rentals alone dropped 9% year-on-year, signaling a shift toward a more balanced market,' he said. The launch of Dubai's Smart Rental Index, which promotes fair pricing, along with a steady stream of new residential handovers, is pushing landlords to rethink their strategies. Rupert Simmonds, director of leasing at Betterhomes, said villa communities like Nad Al Sheba and The Villa have seen rents fall 7–9% over the past year. 'Areas with high new supply, like Dubai Creek Harbour and MBR City, are likely to see further declines,' he added. Mid-tier communities such as Jumeirah Village Circle and Dubai Sports City are stabilising, while luxury areas like Palm Jumeirah and Downtown Dubai remain resilient due to limited availability and high demand from wealthy expats. Landlords are facing growing pressure as more tenants shift toward homeownership. The Dubai Land Department reported a 30% drop in rental renewals month-on-month. 'This competition is prompting landlords to be more flexible to avoid vacancies,' said Simmonds. Joshua Nairn from Huspy Real Estate summed it up: 'The market has matured. While we may see fluctuations in areas with new supply, a city-wide decline in rents is unlikely given Dubai's strong fundamentals.' News Source: Khaleej Times
Khaleej Times
18-04-2025
- Business
- Khaleej Times
Dubai: Are rents dropping in some communities after double-digit hikes?
Rents in some Dubai communities have declined. Overall, however, rents are increasing at a slower pace. Real estate industry executives say that the era of double-digit rent increases is behind us as the market has matured. It is now seeing much more stable and gradual growth in rentals. Rents and property prices have been rising after the pandemic due to strong demand from a growing population, which is rising at an almost double-digit rate. Lately, rents have been plateauing after the four-year rally and industry insiders say that they are dropping in some areas. These include locations where new supply has hit the market, and older buildings following the launch of the new Smart Rental Index. Lewis Allsopp, chairman at Allsopp & Allsopp, said there are signs that the emirate's rental market might be entering a period of adjustment. He said Allsopp & Allsopp's data showed an 8 per cent decrease in average rental prices across both apartments and villas/townhouses month-on-month. 'Specifically, apartment rentals have seen a 9 per cent year-on-year drop. These figures suggest a shift in the market's previous upward trend which could create a more balanced environment for both landlords and tenants.' Rents in Dubai are likely to adjust because of a few things. The new smart rental index is a major factor, pushing landlords to keep prices fair. More new buildings mean more rental options too. Plus, with more tenants considering buying homes, landlords need to be competitive. All of this is working to balance the rental market. 'Rents have already decreased from their peak in certain areas, with some achieving lower rents in 2025 compared to 2024. Villa communities like Nad Al Sheba and The Villa have seen a 7-9 per cent drop over the past 12 months,' said Rupert Simmonds, director of leasing at Betterhomes. He added that communities with a high level of new supply are likely to experience declines starting in 2025 into 2026. 'While some rents have plateaued or even declined, others are still increasing. Prime areas such as Palm Jumeirah, Downtown Dubai, and Dubai Hills Estate have remained stable or risen due to high demand and limited luxury properties. Meanwhile, mid-tier and affordable communities like Jumeirah Village Circle (JVC), Dubai Sports City, and Discovery Gardens show signs of stabilisation,' he said. According to Simmonds, luxury properties in prime areas such as Palm Jumeirah and Dubai Marina will likely be less affected due to limited availability and the influx of high-net-worth individuals (HNWI) and ultra-high-net-worth individuals (UHNWI) moving to Dubai. Growing competition among landlords Allsopp added that the trend of rising rents has pushed many tenants towards homeownership, with the Dubai Land Department reporting a 30 per cent month-on-month decrease in rental renewals. 'This is prompting landlords to reconsider rental pricing to attract new tenants. Additionally, the Smart Rental Index will likely put pressure on landlords of older buildings to lower rents if they don't meet current amenity and finishing standards,' he said. Rupert Simmonds noted that areas that are seeing a high volume of new unit handovers such as Dubai Creek Harbour, Mohammed Bin Rashid City, and Dubailand, could experience rent decreases. 'This is because increased competition among landlords will likely put downward pressure on rental prices. Landlords who are inflexible may face more vacancies, increasing downward pressure on prices. Landlords should be flexible on price to ensure maximum occupancy and minimum void periods because that is where a landlord makes the biggest loss,' added the director of leasing at Betterhomes. No more double-digit rental increase Joshua Nairn, leasing manager at Huspy Real Estate, believes the era of double-digit increases is behind us. He expects some fluctuations in communities experiencing mass handovers of new properties, as the increased supply could temporarily impact rents in those specific areas. However, overall, he doesn't foresee a decline across the city. 'The market has matured, and we are now seeing much more stable and gradual growth in rental prices,' he said, adding that he doesn't foresee rents decreasing in Dubai's major communities. 'With that being said, we may see fluctuations in specific areas or certain market segments, but I do not anticipate a widespread decline across the city. Given Dubai's strong market fundamentals — including population growth and economic stability — I don't expect significant declines in rent over the next couple of years, certainly not by 2025 or 2026,' he added. Nairn added that new residential units are being introduced to the market, helping to balance supply and demand, potentially slowing down the rate at which rental prices increase.
