Russians continue to buy up real estate in Dubai?
Russian buyers were more active in the UAE real estate market in 2023 compared to the previous year.
Although the Chinese are becoming more active, Russians are still the leaders among foreign buyers and investors. They purchased about 12% of real estate from the largest developer Emaar, which is responsible for 30% of all sales in the emirate. Last year their share was < 10%.
The UAE can be called a major destination for wealthy Russians, especially Dubai:
- The country does not impose sanctions on Russians;
- It is actively developing and becoming a center of business activity;
- Dubai's population consists mainly of expats, a large proportion of which are Russian fellow citizens.
Russian buyers are mainly interested in the elite segment of Dubai, where rental yields are high and investment costs are low.
We assume that Russians will remain the dominant buyers this year, and next year their place will be taken by the Chinese, as the number of Chinese businesses in Dubai is already growing. According to reports for the past part of the year, more than 8,000 Chinese companies have registered (up 70% year-on-year).