Dubai’s thriving real estate market has seen a notable surge in interest from Russian buyers, marking a robust demand for properties in the UAE, as reported by Bloomberg recently.
Emaar Properties, Dubai’s leading real estate company responsible for approximately 30% of pre-construction home sales, revealed that Russian nationals now constitute the largest segment of their market. While the exact percentage was not disclosed, this development underscores the increasing presence of Russian buyers.
This rise in Russian interest can be attributed to sanctions that have led them to diversify their investments away from Western countries. This shift in investment strategy has, in turn, driven property prices in Dubai to record levels.
Sara Boutros, an analyst from CI Capital, noted that Russian investors accounted for roughly 12% of buyers in Emaar developments this year, marking a significant climb from their previous rankings in 2022 and 2020.
“We anticipate that Russian interest will remain robust throughout the year,” Boutros predicts. “This can largely be attributed to the allure of Dubai’s luxury real estate segment, offering high rental yields and attractive investment costs.”
Dubai’s real estate market further sweetens the deal for Russian investors with favorable conditions like the absence of rental income taxes and attractive rental yields. In the second quarter, residential rental incomes in the city ranged from 6.75% to 7.25%, according to real estate adviser CBRE Group Inc.
The Dubai property market has been experiencing a rapid post-pandemic recovery, thanks in part to a new influx of buyers, including high-net-worth Russians who have sought to safeguard their assets by moving funds to the emirate.
Recent data shows that Dubai’s residential real estate prices surged by 17% over the past year, in stark contrast to many Western markets grappling with housing slumps due to rising borrowing costs.
