Demand beats supply: Dubai needs 75,000 new units a year?
No oversupply of housing units as Dubai population is growing: Allsopp
By Parag Deulgaonkar
Published Monday, April 04, 2016
Pics courtesy: DLD twitter
A Dubai-based property consultant is confident that Dubai’s property market is not facing any oversupply issues with properties listed at the right price are finding buyers.
“Claims there is an oversupply of property and too many developments in the pipeline are patently false, as we are already beginning to see demand outstrip supply as the availability of listed properties for sale continues to decrease,” Allsopp & Allsopp CEO Lewis Allsopp said in a statement.
He adds that Dubai has registered population growth of seven per cent year-on-year, which translates into need of at least 75,000 new properties entering the market every year.
“Many developers have either slowed down construction or delayed the launch of new projects this year. With demand continuing at peak levels and continued low supply, property prices are set to increase,” believes Allsopp.
Under the current market conditions, the company says “desirable” properties listed at an “achievable” price are receiving multiple offers from buyers.
“This shows the real strength of the market and has the combined effect of keeping supply tight, demand high and, as we’re starting to see, prices increasing.”
The company’s claims its buyer registration and sales data shows February 2016 recording the highest sales volume since it started in 2008, registering a 62 per cent increase in buyer registration compared to same period in 2015.
“Oversupply would be the first thing to show the market is in trouble but the fact is we are facing precisely the opposite scenario – we’re actually struggling to find units for the demand.”
One of the reasons of oversupply is multiple listing of units on online property sites, claims Allsopp.
“A quick online search shows 214 properties listed on Dubizzle for Al Reem Villas and Arabian Ranches, however, when we look into what is actually available for sale and then funnel it down to what you can actually move into as an end user today; there is only 16 properties available to view. So only seven per cent of what is listed on the property portals is really available to move into today”.
Duplicate ads forbidden
When contacted by Emirates24|7, Ann Boothello, Product Marketing Manager, for dubizzle properties, states: “We serve as an intermediary to connect agents and owners to potential buyers and tenants, and we expect those who use our platform to act ethically and fairly. Duplicate ads are forbidden on dubizzle and hence when a user posts an ad, they agree to our ad posting rules. These rules state explicitly that by postings ads in the properties section, they will not place an ad more than once or in multiple categories.”
She adds that once the user accepts these terms, the company expects them to abide by these rules, and conduct fair usage of the platform.
“However, there are still occasions whereby users misuse the system and post duplicates. To combat this, we have a full-time team of highly vigilant content clean-up reps proactively deleting duplicate property ads on a regular basis, as well educating agents on why it is important to avoid posting duplicate ads so as to ensure visitors to the section enjoy a better property search experience and professional agencies have a fair chance of exposure for their real properties without getting lost in a crowd of repetitive listings.”
The portal currently has over 200,000 live property ads and over 1.2 million monthly visitors to its properties page.