Increasing investor demand from China and Russia has contributed to the UAE’s market’s rapid expansion. This is especially true of Dubai’s luxury real estate sector.
Rich people from these two nations are increasingly turning to Dubai in search of high yields and a safe refuge for their investments as geopolitical tensions and economic uncertainty linger at home.
This year, the largest levels of investment have constantly been attracted to Dubai and Abu Dhabi, according to Adil Akhtar, CEO and creator of Foremen Fiefdom Real Estate.It’s especially striking how much the luxury real estate market has grown.
Russian and Chinese investors have been particularly active buyers of real estate in Dubai, according to Sergei Rakov, Head of Technology at real estate firm Allsopp & Allsopp, with transaction volumes notably rising since last year.
The luxury parts of Dubai have seen significant price increases as a result of this influx. Al Barrari experienced a 400% rise in real estate transactions at its investment locations, with its clientele predominately made up of extremely rich customers.
Transaction volumes also show the soaring demand. In Abu Dhabi and Dubai, the off-plan residential market has seen year-to-date growth of 94.1 percent and 43.3 percent, respectively, according to Akhtar.
Both the Chinese and Russian groups have created a powerful presence when it comes to luxury real estate. However, after the conflict in Ukraine, Russians first dominated the market earlier in 2022.
Chinese investment peaked historically at between 13 and 14% of overall sales, down to 4% in 2022 but increasing to 8% this year, Akhtar observes.
Dubai Marina, Palm Jumeirah, and Jumeirah Beach Residences for Russians are popular investment areas. According to Allsopp & Allsopp, their Chinese counterparts choose places like Downtown Dubai, The Springs, and Jumeirah Golf Estates.
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