Russians become the biggest buyers of real estate in Dubai
Russians have become the biggest international buyers of real estate in Dubai over the past year, as Dubai has emerged as a safe haven amid geopolitical and economic uncertainty elsewhere around the world.
Dubai recorded more than 86,000 sales deals in the real estate market last year, surpassing the previous record of 80,000 deals in 2009, according to Dubai-based Better Homes brokerage.
The real estate sector accounts for about a third of the economy in Dubai.
Real estate worth 208 billion Emirate Dirhams ($56.6 billion) was sold last year, an increase of nearly 80% over 2021.
The price increase slowed to 11% in 2022 from 21% a year earlier.
Dubai’s real estate market is bucking the trend in most parts of the world, which has seen house values plummet amid rising interest rates and bleak economic growth prospects.
Prices and rents in the emirate have also been boosted by bankers fleeing strict lockdowns in Asia, Israeli investors, crypto-asset owners and hedge fund executives, after the city eased social restrictions and passed more liberal laws to cement its status as a business hub in the region.
In another report published today, Monday, the real estate consultancy firm Knight Frank said that Dubai also witnessed the sale of 219 ultra-luxury residences – with a value of at least $10 million per dwelling last year, which is more than double the number of such purchases in 2021.