Allsopp & Allsopp reveals Dubai's average property price hits a nine-year high, crossing the 2014 all-time high!
As we at Allsopp & Allsopp gear up for the final month of 2023, we saw Dubai continue breaking records after records in the real estate market, which truly comes as no surprise. But one in particular might - Dubai’s average property price has hit an all-time high, crossing its previous set record in 2014!?
Allsopp & Allsopp Group took a dive into the nitty gritty to see just how the last 11 months have performed in the property market, with the exclusive key highlights that we noticed throughout the flow of the year.
So, let us break it down for you…
A rising cycle of 36 months!
Dubai's current property market cycle has spanned to a robust 36 months, and is still ascending. We are yet to reach its peak!?
In this flow, Dubai has emerged as a global real estate powerhouse, marking a remarkable 1.2% monthly growth on average. Homeowners and investors alike have reaped the benefits of the growing market, witnessing a staggering 41.8% surge in average home prices during this cycle, especially in prime locations.
Not to mention, the serious craze for branded residence that grew triple fold throughout the year.?
Past vs. present: Why 2023 differs from 2014
Comparing the current cycle of 2023 to the 2014 market peak, the differences are stark.?
The previous surge of 2014 was driven by speculative investors who were seeking quick returns which ended up resulting in a shorter-lived cycle of 24 months. Whereas, in 2023, investors are comfortably sitting on their investments rather than cashing out and are reaping the rewards of it with higher ROI’s and greater capital appreciation on their properties.??
In 2014, Government interventions also took place such as, increased property sales registration fees and stricter loan conditions, which were aimed to stabilise the overheated market.?
Fast forward to 2023, and we witness a market driven by a higher number of end-users, ensuring a more sustainable growth trajectory. Unlike 2014, we're seeing impressive indicators supporting this upward trajectory such as:
These signals reflect a city attracting more residents, establishing roots, and opting for longer stays compared to the previous market cycle.
Trip Advisor’s #1 tourist destination
This year, Dubai wasn’t just a tourist hotspot; it was also crowned Trip Advisor's 2023 #1 tourist destination and the top choice for expat relocation, as revealed in the 2023 Remitly expat report. With its 2040 master plan, Dubai is set to accommodate a growing population, aiming to reach 5.8 million by 2040.
So, the real estate market really has no chances of slowing down anytime soon, trust us!
The dynamic of demand vs. supply
When looking at the supply and demand dynamics of 2023, Dubai is far from an oversupply scenario which was witnessed in 2014.?
In 2023, the influx of new residents is outpacing the availability of properties in the market. By the end of 2023, approximately 50,000 new properties will have been handed over, a fraction of the net population growth. While developers are addressing the undersupply, it will take until 2025-27 for this to reflect in the market.
A glimpse into the future
Looking ahead to 2024, the story is much the same, with 60-80,000 new properties forecasted to be handed over, one thing to note is that the current level of off-plan sales activity and new launches in 2023 looks set to pass 100,000 units by the end of the year, showing a clear intention from developers to address the current undersupply of secondary properties in the market.?
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But? this supply will reach the end-user market in 2025-27, meaning the Dubai property market will remain undersupplied for a considerable time longer based on the 2024-27 population growth and demand forecast.
“While I cannot see into the future, if 2024 passes without any natural disasters/events the Dubai property market will continue to thrive. Contrary to declining, it will likely set new records well into 2024, following its recent all-time high.” - Lewis Allsopp; CEO of Allsopp & Allsopp Group
Allsopp & Allsopp rocks the leaderboard for Dubai 30 x 30 Fitness Challenge!?
The Dubai's Fitness Challenge has officially come to an end, concluding its seventh year, and Allsopp & Allsopp has emerged as the standout corporate participant. Allsopp & Allsopp showcased that fitness indeed equals results, by putting employee participation and health at the forefront of the business during November.
Let’s break down how…
Unlocking peak performance through fitness
During the 30-day Dubai Fitness Challenge, a whopping 52% of Allsopp & Allsopp employees exceeded their average monthly commission for 2023. The top 30 participants on the Allsopp & Allsopp DFC leaderboard demonstrated an outstanding 41% increase in revenue compared to any other month in 2023. These achievements underline a direct correlation between fitness engagement and business performance.
How training and progress paved the way
Teaming up with Boxica, a popular boutique boxing gym in Studio City, Allsopp & Allsopp is organising weekly classes for its employees, featuring a diverse range of workouts from boxing to spin, sweat sessions, and high-intensity interval training (HIIT). The best part? These classes are complimentary for all employees, promoting physical fitness as part of the company culture. Check it out:
But that's not all. Allsopp & Allsopp has gone the extra mile to motivate its team by launching a Sunrise Runners Club. Three times a week, employees hit the most scenic running tracks in Dubai, including Dubai Hills, Downtown Dubai, and Kite Beach. This initiative is aimed at making fitness a way of life for their staff.
The ripple effect
When analysing the internal fitness challenge results alongside staff performance, data? revealed a powerful ripple effect.?
Among the top 50 performers on the company leaderboard, 27 were fee-earning staff, with 14 surpassing their 2023 monthly commission averages during the 30x30 challenge. Post-challenge, long-term employees witnessed an impressive 41.21% increase in monthly commissions compared to their 2023 average. Even with new joiners included, the overall average monthly commission for all qualified employees saw a notable 33.62% boost!
Investing in holistic-well being?
For Allsopp & Allsopp, the commitment to fitness goes beyond corporate responsibility; it's a strategic investment in the holistic well-being of their employees. This approach creates a workplace culture that values health, teamwork, and excellence, setting a new standard for how fitness and commitment translate into tangible results.
“Cultivating a workspace that drives top performance and fosters a strong sense of community is at the heart of what we do at Allsopp & Allsopp. An environment where employees feel valued and connected is fundamental to their overall success, and activities such as the one proposed by 30x30 support us in delivering this promised environment. By focusing on both individual achievements and a collaborative community spirit, we create a dynamic where everyone can thrive and excel.” - Carl Allsopp; Chief Operating Officer at Allsopp & Allsopp Group.
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Stay tuned for more updates and insights as we continue to monitor and interpret Dubai's dynamic property market. These data points help with scheduling the future perspective for unlocking insights into Dubai’s real estate market.