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Since the beginning of 2022, investments by Russian citizens in real estate in Dubai have grown by 79% compared to the beginning of 2021. In 2023, Russians continue to actively buy housing and invest in the Dubai real estate market. Some people decided to withdraw their funds offshore to save them, and some people got a residence visa and moved to the emirate to reside.
Content:
- Massive bursts in Dubai real estate
- Reasons why Russians invest in real estate in Dubai
- Increasing demand for housing in Dubai
Massive bursts in Dubai real estate
Over the past decade, Dubai's real estate market has seen one of its biggest economic booms in 2022, which has resulted in growing demand from Russian investors.
In the first half of 2022, Russian demand for the purchase of real estate abroad increased by 84% compared to 2021.
In the third quarter of 2022, the number of transactions reached a record turnover of 25,500 transactions, which is 60% more than in the same period of 2021.
Over the past year, the number of Russian-speaking immigrants in Dubai has quadrupled. Currently, about 300,000 Russian-speaking citizens live in Dubai, which is 10% of the total population of Dubai.
Reasons why Russians invest in real estate in Dubai
What is the reason for the boom in investing Russians in the Dubai real estate market?
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Immigration.
Amid the critical events of 2022, Russians began moving abroad en masse, partly to protect their assets. Due to fluctuations in the ruble exchange rate, higher interest rates of the Central Bank, sanctions and separation from the global banking system, investors and businesspersons had to look for safe ways to save and increase their money.
The UAE remains neutral for all countries, allowing Russians to fly to the Emirates (there are direct flights from Moscow), purchase housing, become residents, open bank accounts, and freely store foreign currency.
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Business development and entry into the global market.
The UAE maintains diplomatic relations with all countries, which has a positive effect on both foreign investors and the Emirates themselves.
Businessmen have access to all the conditions for a comfortable relocation and business creation (tax optimization, business reliability, absence of sanctions and corruption, residence permit for a period of 2-3 or 10 years, innovative technologies), and the UAE receives additional investment and continuous growth of the economic sphere countries.
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Convenient taxation.
The comfortable tax system of the UAE attracts Russian businesspersons, as well as their partners and employees. The work of individuals in the emirates is not taxed. There are no annual taxes on real estate, securities, and inheritance.
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High profitability of the real estate market.
Investments in real estate in Dubai offer returns of up to 45% in hard currency. Besides, when renting out real estate, apartment owners can receive up to 15% passive income. In 2023 and 2024, the Dubai real estate market will continue to grow, with a projected growth of 46%.
Increasing demand for housing in Dubai
Already in the first half of 2023, the flow of Russians wishing to buy property in the UAE will increase by 30% compared to the same period in 2022. Dubai brokerages are expecting an even greater influx of potential buyers from Russia, including a 200% increase in housing demand by the end of the year. The results of increased demand for real estate are already visible to the market, as the number of transactions increased by 120% compared to the same period last year.
Real estate prices in 2023 in the UAE may increase by 25% due to strong demand from Russia. This indicates that an attractive investment climate for investing in real estate is being formed in the emirates.
