According to real estate services firm Allsopp & Allsopp, this is a striking 126% increase over the last year
Q1 saw a significant 25.2% surge in overall letting viewings compared to Q4 of 2023, marking an impressive 126% increase from Q1 last year. With the recent population growth, viewings have been going up as people settle into the city. Additionally, as more projects are being completed and delivered, tenants are exploring more property options in various locations and communities.
According to real estate firm Allsopp & Allsopp’s Q1 report, villa and townhouse price increases outpaced apartment price increases in Q1, with a 31% average increase. After welcoming over 25,700 new residents into the country this quarter, demand for villas and townhouses was expected to increase as more people got ready to call Dubai their home.
Apartments saw a more moderate 7.5% increase in rent prices compared to villas and townhouses this quarter. Downtown Dubai, Dubai Marina, and Business Bay remain crowd favourites, topping the list of transacting apartment areas, with an overall average apartment letting price of AED 142,307 as per Allsopp & Allsopp data.
Apartments recorded a 3% increase in transactions, a trend that aligns with the population growth, especially for first-time movers into Dubai. With more units reaching completion and existing tenants exploring different properties that may offer lower rents, we are seeing overall listings increase. Allsopp & Allsopp recorded a 25% increase in property listings in comparison to the last quarter, and a significant 40% jump compared to the same period last year.
We are seeing our tenants really taking their time, looking around more to make sure they are moving to a place that is just as good, if not better, than their last one. They are committed to keeping a certain lifestyle and sense of community, which is one of the reasons why we recorded a surge in viewings.
Richard Feeney, Head of Lettings at Allsopp & Allsopp
Richard Feeney, Head of Lettings at Allsopp & Allsopp said, “As rental prices continue to rise, we are observing a clear shift in tenant preferences. More tenants are exploring options in communities a bit away from the city centre where they can enjoy cheaper rents with similar property sizes as their current homes. Deciding to move is no longer a quick choice. We are seeing our tenants really taking their time, looking around more to make sure they are moving to a place that is just as good, if not better, than their last one. They are committed to keeping a certain lifestyle and sense of community, which is one of the reasons why we recorded a surge in viewings.”
He further added, “In Q1, the demand for luxury accommodations also saw a positive uptick as we recorded our highest rent value. Dubai is a market of duality, where budget-conscious renters and high-end renters co-exist. Additionally, with all the expats who moved in Q1, it is natural to see more renters in the market.”
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