Russians made up the majority of the top 5 buyers in Dubai‘s red-hot asset market during the first half of the year as investors flocked there as the emirate benefited from an influx of riches after Western sanctions. Residential real estate transaction volumes increased by 60% in the first half of 2016, while the price of homes sold increased by 85%, according to research from the resources consulting Better homes.
The top clients came from India, the United Kingdom, Italy, Russia, and France, in that order. Canada, the United Arab Emirates, Pakistan, and Egypt shared eighth place, Lebanon, and China also made an appearance.
As compared to the first half of 2021, the number of Russian consumers increased by 164% in the first half of this year, according to Betterhomes’ response to a Reuters inquiry. While India’s and Italy’s numbers decreased by 8% and 17%, respectively, France’s and Britain’s numbers increased by 42% and 18%. Geopolitical unrest in Europe and loan clients trying to enter the market before anticipated hobby price increases drove demand, according to Better homes.
Russians have been flooding Dubai real estate with cash, according to Reuters, in pursuit of a haven from Western sanctions imposed on Moscow due to its invasion of Ukraine. The market has faced mounting headwinds in the form of rising hobby costs and a stronger dollar, but to date has proven to be strong with little evidence of weakening, according to Better homes.
A record 37,762 units were sold in the first half of the year, according to figures from the Dubai Land Department, with residential real estate market transactions totaling about 89 billion dirhams ($24.23 billion). Dubai’s real estate market began to recover from 2020’s severe collapse early last year, and as the emirate quickly relaxed pandemic laws compared to other cities across the world, buyers flocked to purchase expensive items.
However, S&P Global Ratings said in October that Dubai’s real estate market had become brittle and unequal and that an excess of residential properties might put pressure on prices. According to Better homes, the number of luxury asset transfers has increased by 87% compared to the first half of last year, with residential purchases accounting for 62% of all transactions. Investors dominated sales, accounting for 68% of all clients, an increase of 10% from a year earlier.
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