According to data, Russians have emerged as the top buyers of real estate in Dubai, signaling strong demand for property in the UAE amid sanctions that have prompted them to stop investing in Western countries. Emaar Properties, Dubai’s largest real estate company, which accounts for about 30% of all home sales, reported that Russian nationals represented the largest segment of buyers. While the exact percentage was not specified, it is clear that Russians have significantly increased property purchases in Dubai, driving prices in the emirate to record levels.
Sara Boutros, an analyst from CI Capital, revealed that investors from Russia accounted for approximately 12% of buyers in Emaar developments this year, compared to second place in 2022 and ninth place in 2020. She expects Russian investment flows to remain strong for the rest of the year due to the attractiveness of the luxury segment in Dubai. The high rental yields and low investment costs make it an appealing destination for Russian investors.
Dubai offers preferential conditions for real estate investment, including the absence of a rental income tax and higher rental yields. According to real estate adviser CBRE Group Inc., residential rental incomes in the city ranged from 6.75% to 7.25% in the second quarter. These favorable conditions have attracted wealthy Russians looking to invest and generate income from rental properties.
The property market in Dubai has seen a rapid recovery from the pandemic, driven by an influx of new buyers. High-net-worth Russians have been moving their funds to the emirate to safeguard their assets. While many Western markets faced a housing slump due to surging borrowing costs, Dubai’s residential real estate prices have increased by 17% over the past year. This growth further highlights the appeal of the Dubai market to Russian investors.
In addition to Dubai, Russians have also emerged as the top foreign buyers of real estate in Türkiye in July. They accounted for about a quarter of all homes sold to foreigners in the country. This trend reflects a broader pattern of Russian investors redirecting their investment activities away from Western countries due to sanctions and seeking alternative markets like Dubai and Türkiye.
The data shows that Russians continue to be active in the global real estate market, particularly in Dubai and Türkiye. The geopolitical landscape, including sanctions and political tensions, has influenced their investment choices. Dubai’s attractive investment conditions and strong rental yields have made it a preferred destination for Russian investors seeking stable returns. The increasing presence of Russians in these markets is likely to have a long-term impact on the real estate sector, driving prices and shaping investment trends.
Overall, the demand for property in Dubai remains robust, with Russians leading the way in real estate purchases. This trend is driven by both the attractive investment conditions in Dubai and the impact of sanctions on Russian investment in Western countries. As Russian investors seek alternative markets, Dubai has emerged as a lucrative destination, offering stability, high rental yields, and low investment costs. The strong presence of Russians in Dubai’s real estate market is expected to continue throughout the year, further shaping the city’s property landscape.