Dubai-based brokerage firm Allsopp & Allsopp is claiming UAE property portals are exaggerating the supply of properties on the local market.
Allsopp & Allsopp CEO Lewis Allsopp says online property sites such as Dubizzle and Property Finder are manipulating their listings to make it look like there are more properties available than there actually are.
“A quick search online shows 214 properties listed on Dubizzle for Al Reem Villas, 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,” Allsopp says.
“So only seven per cent of what is listed on the property portals is really available to move into today,” Allsopp says.
Allsopp argues the portals are feeding a misconception that there is an oversupply in the market. He says claims there is an oversupply of property and too many developments in the pipeline are patently false.
“We are already beginning to see demand outstrip supply as the availability of listed properties for sale continues to decrease,” he says.
“Oversupply would be the first thing to show the market is in trouble but the fact is we are facing the exact opposite scenario – we’re actually struggling to find units for the demand.”
For example Allsopp points to the Dubai Marina, where there are just over 1500 owners who have advised they would like to sell or are thinking about selling registered on Allsopp & Allsopp’s books.
“However we only actively have and are ready to move on a total 108 units as these are the only apartments that ready for an end user to move in,” Allsopp says.
“You then would need to dwindle this down to location, price range, developer and aesthetics of the property before a buyer is left with a choice of only a handful of properties they would realistically consider.
“The reality is even if there is a lot if units being built, there still isn’t a lot of choice for the end user.”
Allsopp & Allsopp’s February sales figures show 52 per cent of the properties it sold last month were on the market for less than two weeks.
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, Allsopp predicts this will lead to an increase in property prices.