Russians have become the main buyers of residential real estate from Dubai’s largest developer Emaar Properties
Russians have become the leading buyers of residential real estate in Dubai, Bloomberg writes with reference to the report prepared by Dubai’s largest developer Emaar Properties for investors in the first half of this year.
CI Capital analyst Sara Boutros estimates that Russians top the list with 12% of purchases this year. For comparison, in 2022 Russians take the second place, and in 2020 — the ninth.
Boutros believes that Russians’ interest in Dubai will remain high until the end of this year. This is mainly due to the attractive Dubai luxury real estate market, very high rental yields and low investment costs,» the analyst said.
According to CBRE Group, in the second quarter, rental yields in Dubai ranged from 6.75% to 7.25%. Rental income and capital gains in Dubai are not taxed, and when buying real estate, the state charges a 4 percent duty, which is lower than in many other markets.
Dubai’s real estate market is booming despite the global trend of falling house prices due to rising interest rates and deteriorating prospects for economic growth, the report says. The recovery of the Dubai market replaced the seven-year drop in housing prices that began after the pandemic, and was caused by the arrival of cryptocurrency millionaires and bankers from Asia, as well as asset protection. The agency writes that the arrival of new residents, including wealthy Russians seeking asset protection, contributed to the recovery of the Dubai market.