London vs. Dubai: Why I Chose the Smarter Investment

On this week's episode of Taking Care of Business the brothers delve into Dubai’s property transaction figures for February 2025, focusing on data from Allsopp & Allsopp and the Dubai Land Department. Lewis and Carl discuss how agents are queuing overnight for property reservations, the impact of the new Golden Visa regulations, and the differences between Dubai’s property value compared to other key cities.

A Tale of Two Markets

The podcast kicked off by acknowledging a clear division in the market. Villas and townhouses are experiencing a surge in demand, while the apartment sector, though still active, presents a different picture. "There's a massive, massive demand for villas and townhouses and there's no way near enough," Lewis states, highlighting the intense competition for villa and townhouse properties. “This boom is driven by limited inventory and the appeal of larger living spaces, as families grow up alongside Dubai’s development” adds Carl.

This was vividly illustrated by the overnight queues for new launches, like Tilal Al Ghaf with Carl saying, "we are in a day and age 2025 where people are queuing up overnight to stay in the queue to try and be able to reserve a property," Lewis remarked, emphasising the extraordinary levels of interest.

Numbers Don't Lie - Limited Stock Fuels Price Hikes

The statistics spoke for themselves:

• 93% increase year-on-year in villa and townhouse sales value (Dubai Land Department)

• 105% increase in sales value (Allsopp & Allsopp data)

• 102% increase in sales volume (Dubai Land Department)

Lewis asks Carl why he thinks the townhouse and villas data is booming?" Carl says it could be attributed to limited inventory, the appeal of larger living spaces, and the trend of families "growing up" alongside Dubai. The limited inventory is a key driver for the price hikes.

Complexity and Privacy Drive Cash Deals

Shifting focus to the luxury segment, the podcast revealed a striking trend: a 91% increase in cash buyers year-on-year. "When you have a lot of money, you probably have a more complex financial situation," Carl explained, suggesting that navigating complex ownership structures often makes cash purchases more efficient. Lewis also adds that often those with high value assets, will leverage those assets to gain cash, rather than going for traditional mortgages. The high percentage of cash buyers is also likely driven by the privacy that cash transactions provide.

The success of Jumeirah Golf Estates was another highlight, with Allsopp & Allsopp boasting a 52% market share of sold properties. "That is wild numbers," Lewis says. The surge in high-value villa sales in JGE has been attributed to extensive renovations and the rising market.

A Shift in Dynamics - Landlords Seek Market Value

The rental market is also experiencing significant changes. A 30% decline in rental renewals month-on-month was noted. This was attributed to tenants looking to move to homeownership. Rental prices are also on the rise, with a 4% increase month-on-month for apartments and a 7% increase for villas and townhouses.

Dubai's Value Proposition

The podcast concluded with a discussion on Dubai's overall market value. "I think it's where it should be, based on population, people coming to country,"Carl states. Lewis and Carl then did a comparison between London and Dubai property prices. They concluded that Dubai is currently offering better value for money. Dubai’s current market value is supported by its continuous population growth.

The recent change in mortgage regulations, where fees and commissions can no longer be included in the loan, was also discussed. Both agreed that this would have an impact on buyers. The change will cause some buyers to adjust their buying power.

For those seeking more detailed information, the full market report is available through Allsopp & Allsopp's website.

For those interested in the Dubai property market please reach out to our experts now.

For the full Taking Care Of Business podcast episode head to our YouTube channel