Why are Russians actively investing in real estate in Dubai?

Competition in the Dubai real estate market

Against the backdrop of competition between wealthy Indians and British for dominance in investments, Russians confidently hold the third position in the Dubai real estate market and have no intention of giving it up. Since the beginning of observations, foreign investors have already invested more than46 billion dollarsin the real estate of the emirate. According to the Dubai Land Department, in the first half of 2023, there were registered60,927 transactionswhich indicates ongoing activity.

Demand for luxury real estate

Interest in high-quality apartments and luxury villas remains stable, indicating a growing appeal for investment. This is happening even despite the record increase in housing prices, which reached16.9%The construction industry is responding to the increased demand: last year, the number of new residential projects rose by135%.

Key factors for market growth

Among the main factors contributing to the growth of the Dubai real estate market are:

• The arrival of wealthy foreigners from different corners of the world;
• The population increase in Dubai by50,000 peoplefrom the beginning of the year to3.6 million;

These changes significantly impact the market's attractiveness for investments.

Advantages of investing in real estate

Among the important aspects contributing to the growing interest in real estate in Dubai, we can highlight:

• High return on investment (approximately6-8%for standard objects);
• Absence of property taxes;
• Transparency of legislation;
• Numerous immigration programs attracting a new audience.

The interest of Russians in Dubai real estate

According to a study by Lizaveta Matviychuk from Stage Properties Brokers LLC, in 2022, Russians showedincreased interestfor the purchase of housing in Dubai, which has increased by15-20%This includes both investors looking to preserve their assets and those planning to migrate to the UAE who want to obtain a long-term visa.

Record market performance

In June 2023, two decade-long records were set in Dubai:

• Completed10,419 transactionswith real estate - on17.78%more compared to the same period last year;
• The total volume of transactions has increased by34.1%, exceeding8.2 billion dollars.

Notably, about two-thirds of the deals were made in the ten most popular areas of the city.

Top areas for real estate investment

The list of the most sought-after places for real estate investment in Dubai includes:

• Dubai Marina
• Palm Jumeirah
• Dubai Harbour
• Dubai Creek Harbour
• Dubai Hills
• Burj Khalifa
• Jumeirah Lakes Towers
• Jumeirah Village Circle
• Umm Suqeim Third
• Dubai Design District

Popular areas among Russian investors

Which locations are the most attractive for investors from Russia? Analysis shows that Russians prefer areas such as:

• Dubai Marina
• Palm Jumeirah
• Jumeirah Beach Residences (JBR)
• Jumeirah Lake Towers (JLT)
• Dubai Hills

Expert opinion

Ahmed Allorans, the CEO of Sekenkoum Real Estate, notes that the choice of area largely depends on the client's personal goals and financial capabilities. Well-known and reputable locations attract many buyers, including Russians, highlighting their strong interest in the Dubai real estate market.

The popularity of Dubai among Russian investors

Dubai, with its luxurious areas like Jumeirah Beach Resort (JBR) and Dubai Marina, continues to be a favorite destination for tourists from Russia and investors considering real estate. These areas stand out due to their location by the sea and beautiful beaches.

Russian homebuyers have specific requirements regarding location:

• a desire to be in areas with easy access to the center of Dubai and the coastline, which generally takes about 15-20 minutes by car;
• the presence of a well-developed infrastructure with parks, large shopping centers, and a variety of stores;
• Beauty salons, dental clinics, and educational institutions for children should be located in close proximity to housing.

Suitable neighborhoods for living

Considering these preferences, areas such as Dubai Hills, Jumeirah Lake Towers (JLT), Jumeirah Beach Resort, and Dubai Marina perfectly meet the criteria mentioned above.

Investor choice

The CEO of SekenKoum Real Estate, Ahmed Allorans, noted that Russian investors, focused on stable income, often prefer both central areas and actively developing zones such as Business Bay, Meydan, and Dubai Creek. These locations offer real estate with prices that consistently remain high, which is linked to the constant demand for rentals, thus ensuring profitability for investors.

Popular housing options

Among the most popular options for Russians areapartments with one or two bedroomsThese properties are generally characterized by their accessibility and are perfect for renting out. Throughout the emirate, there is a high level of demand for rentals, and the average return on real estate investments ranges from 6% to 8%.

When it comes to migration to the UAE for permanent residence, Russians usually prefervillas and townhouses.

Preferences of long-term tenants

According to Elizabeth Matviychuk, a senior real estate consultant at Stage Properties Brokers LLC, those looking to purchase a home for long-term living often prefer villas or large apartments in areas with developed infrastructure and quality housing. Family neighborhoods are often considered, such as:

• Greens;
• Arabian Ranches;
• Mirdif;
• Dubai Hills;
• Damac Hills;
• Emirates Hills.

In these areas, you can find housing in various price ranges.

Trends in the real estate market

The current situation in the Dubai real estate market also confirms the rise in prices amid growing interest in square meters in this region. Experts and statistical data share this viewpoint.

According to the market price report for the first half of 2023, there was an increase in prices for residential real estate in both the budget and premium segments.

In areas known among Russian buyers, there is also an increase in prices. For example, several properties can be highlighted that attract attention and impress with their quality and appeal. These changes indicate that interest in real estate in Dubai continues to grow, and market conditions are contributing to rising prices and an increase in the number of new offerings.

The variety of real estate prices in Dubai

In Dubai, a variety of price categories for housing is emerging, creating excellent opportunities for both investors and those looking to purchase real estate. Let's take a closer look at the average prices for properties, rental rates, and potential returns in different parts of this magnificent city.

Real estate prices in different neighborhoods

Let's start with Dubai Marina, where the average price for housing is approximately$422,000Renting such an apartment will cost on average$28,590per year, which provides owners with about6.8%returns. In Palm Jumeirah, a well-known resort area, property prices are significantly higher and reach$952,000The rent here is about$48,460per year, which provides a yield at the level of5.1%.

In the areaJumeirah Beach Residence (JBR)the prices for apartments start from$844,000and the rent can amount to$32,670per year, which corresponds to the yield3.9%On the way toJumeirah Lake Towers (JLT)We see that the average cost of housing here is$354,000...and the rent brings in about...$21,780per year, which provides a yield of6.2%.

Popular new projects

New residential complexes, for example,Dubai HillsThey are also gaining popularity among buyers. The average cost of an apartment is$422,000, with a rent of about$32,670per year, providing a return of7.7%In the business centerBusiness Bayhousing prices are reaching$435,600and renting can bring$24,500per year, which will provide a return at the level of5.6%.

Expert opinion

Elizaveta Matviychuk, senior real estate consultant at the companyStage Properties Brokers LLC...shares her observations on current market trends. According to her, the price of one-bedroom apartments ranging from 60 to 70 square meters in...Dubai Marinaoscillates from$360,000to$440,000...while in new buildings similar apartments start from...$600,000.

Infrastructure and features of new residential complexes

Dubai Hillsprimarily consists of new residential buildings with an emphasis on developed infrastructure, including access toDubai Hills MallandBritish SchoolHere you can buy an apartment at average prices starting from$320,000to$410,000It is also interesting to consider townhouses with three bedrooms and a total area of 210 m², with prices starting from$1.2 million.

Options for investing

Real estate in Dubai offers a wide range of investment options. One example is the projectMBL Royallocated in a beautiful areaJumeirah Lakes TowersHere, three-bedroom apartments are offered with an area of215 m²that embody a high standard of living and offer excellent amenities.

It is also worth paying attention to the unique land unit with an area of3942 m², the cost of which is4,757,849 €This opportunity may interest those who are planning to build their own house or commercial building.

Other interesting projects and proposals

The project offers equally enticing options.Samana MykonosinDubai Studio CityIt features apartments with modern amenities, such as private pools and fitness centers. In the projectionBugatti ResidenceThey promise a unique level of luxury, with outstanding architecture and a multitude of services for residents.

Conclusion

Thus, Dubai offers a variety of real estate options for different categories of buyers. Every corner of the city has its unique features and advantages, making it appealing both to renters and to those looking to purchase a home.

Luxury real estate in Dubai

We are pleased to present you with impressive offerings from Habita International Estates Ltd and DDA Real Estate in the field of luxury real estate in Dubai, United Arab Emirates. One of the standout projects is the Bugatti Residence, which embodies not just a home, but a true work of art created with exquisite taste. Every element of this complex is designed to provide an incredible sense of luxury for its residents.

Observing the dynamics of the Dubai real estate market, one cannot help but be amazed at how actively and effectively competition is taking place here. While Indian and British investors strive to take leading positions, Russians confidently hold the third spot, actively participating in this exciting process. These are not just numbers, but clear evidence of interest and trust in the Dubai market.

According to the data, foreign investments in the emirate's real estate have already exceeded46 billion dollarsIn the first half of 2023, a significant number of transactions were made — around60,927and this number continues to grow. It is especially pleasing to see that the demand encompasses both premium and more affordable properties, which indicates a variety of offerings for different categories of buyers. Even despite the record increase in residential real estate prices in16.9%As of June 2023, the market continues to show strong results.

It is noteworthy that the construction sector is responding readily to the growing demand. Over the year, the number of new residential projects has increased by135%This indicates that interest in Dubai continues to grow, thanks to the influx of wealthy expats, among whom a significant number are Russians. This year, the population of Dubai has increased by50 thousand people...and this is not just statistics, but an indicator of a friendly and promising climate.

Popular areas among Russians

Speaking about the preferences of Russians, several key areas can be highlighted that attract their attention:

• Dubai Marina
• Palm Jumeirah
• JBR (Jumeirah Beach Residences)
• JLT (Jumeirah Lake Towers)
• Dubai Hills

They are looking for not only a good investment but also a place where they can live comfortably, keeping in mind the proximity to the sea and developed infrastructure.

The interest of Russians

According to expert observations, Russians actively prefer villas and large apartments in neighborhoods with good infrastructure, which certainly indicates their desire for a high quality of life. However, for many, the opportunity to generate income from renting out property is also important, making central areas and rapidly developing locations still attractive.

Conclusions

Thus, the real estate market in Dubai continues to thrive due to high levels of demand and active investments. For Russians, this is not only an opportunity to preserve and grow their capital but also a chance to find a cozy home in one of the most dynamically developing cities in the world. It is clear that the interest in Dubai housing will not fade, and we are yet to see what new records will be set in the coming years in this city of dreams.