Consulting firm Better Homes said Russians were the largest non-resident buyers of residential properties in Dubai in the third quarter, as they sought a safe haven amid the conflict in Ukraine, compulsory military conscription in Russia and tightening. Western sanctions.
The number of non-resident Russian buyers increased by 11%.
The firm’s data shows that buyers from Great Britain ranked second, despite a 43% drop from the previous quarter, followed by buyers from India, Germany and France. The number of non-resident Russian buyers increased by 11% compared to the previous quarter.
“Russians fleeing war and (with) recent (military) conscription became the most (bought) nationalities over the summer, and with the ongoing war in Ukraine we expect this trend to continue,” Richard Wind, administrator Better Case’s deputy told Reuters.
Britain’s decline in the residential property market
Since the start of the year, Russia and Britain have been the largest sources of investment in Dubai’s real estate market, which has strongly recovered from the 2020 recession, although rising mortgage interest and cost of living may to be against.
Wind pointed out that the weakness of the pound could lead some UK investors to re-evaluate the situation, but he does not expect a significant impact on the investments of individuals with high net worth.
Betterhomes explained that its third quarter report adopted a different methodology that covers only non-resident buyers, not total buyers. The Russians ranked fourth in the previous report for the first half of 2022 for the largest buyers after India, Great Britain and Italy.
Wind said the change aims to more clearly define the countries of origin of investments entering the Dubai market.
Better Homes reported that total sales and value increased 61% in the third quarter year-on-year, with 22,895 units sold, for a total value of AED 52.39 billion ($ 14.26 billion).
He added that growth rates indicated that prices were “stable and sustainable” despite rapid growth in some areas, adding that Palm Jumeirah saw the highest price growth, reaching 10%.
Better Homes said the “imminent” relaunch of Palm Jebel Ali, another palm-shaped island project that has been faltering for years, seems to add “some excitement” to the final quarter of the year.
