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The special operation in Ukraine caused an active reaction in many countries around the world. It is expressed in the introduction of various restrictions on Russian citizens. The real estate market is no exception. The United Arab Emirates has not joined the sanctions suggested by Europe and the United States, which allows Russians to buy housing in all available freehold zones in Dubai. This metropolis is the most popular among foreigners, and at the moment, the market is experiencing a surge in real estate transactions using cryptocurrency.
Content:
Some information about the main trends in the housing market in Dubai
Dubai remains the economic and cultural center of the UAE. The rapid development of the economy attracts foreign investors. The results of 2021 clearly prove the interest in real estate. According to the Dubai Land Department, 84,196 buying and selling transactions were made in four quarters of the year. It looks like this in numbers:
- Transaction growth reached 66.3%;
- The total value of transactions increased by 72% in comparison with 2020.
Not only were flats and apartments in active demand, but also houses and villas were popular. Here, the echoes of the pandemic affected the demand: more and more buyers around the world prefer spacious housing that provides comfort for all family members, regardless of lockdowns or other restrictions. Even increased prices did not affect the growth in demand. This trend continues in 2022. According to Reuters’ analysts, property prices in Dubai will rise even more actively than it is predicted in the previous year. The increase is expected to reach 7.5%.
Why Cryptocurrency
The events of the last month stirred up not only the exchanges. The situation with foreign currency assets clearly demonstrated the dependence of investments not only on the exchange rate, but also on the decisions made by the authorities. At the same time, cryptocurrencies remain popular, and the purchase of foreign real estate allows you to transfer virtual assets into real ones. Cryptocurrency exchanges are facing an outburst in virtual currency transfer requests. Meanwhile, requests come from different countries, including Switzerland. Citizens fear follow-up sanctions and the freezing of assets.
When converting virtual currencies into real ones, funds are invested in properties and also in local businesses. However, the acquisition of housing stock is still the most popular investment format. This scheme has already been repeatedly tested in Dubai. It has a smooth running mechanism of action without any connections to risks.
Prospects
Crypto allows you to withdraw funds from other jurisdictions in an accessible and legal way, and it is a good investment in the housing stock of the country on the coast of the Persian Gulf. For now, this format is available, but there is a high risk that sanctions will affect this area as well. A number of European countries, including Germany and Estonia, have already expressed the need for strict control over the withdrawal of cryptocurrencies in order to prevent the possible bypass of sanctions.
