Wealthy Russian buyers are driving the UAE real estate market to take off

In the near future, Russian buyers are expected to continue to fuel the boom in the UAEreal estate market by making more transactions and purchasing more expensive properties than other buyers. The cost of renting in the UAE is on the rise, so both locals and foreigners are increasingly turning their eyes to purchasing real estate, which is also a reliable investment property.

Russians are also following this trend, with 72% of Russian expatriates in the UAE saying they have bought real estate in the last year. A market survey conducted by consulting firm Redseer reveals that. "Russian expatriates are increasingly settling in the UAE because of its stable economy and political situation, making it a safe haven for high-net-worth individuals seeking refuge in conflict-affected regions," said Akshay Jayaprakasan, partner at consulting firm Redseer.

Russian aggression against Ukraine has led to the imposition of sanctions on Russian citizens by most Western countries. Due to the economic hurdles, oligarchs and other wealthy Russians are looking for any place where they can continue their business operations. The report shows that short-term growth will continue to be driven by Russian foreigners, while long-term growth will be driven by local buyers. Together with rising rental values, the removal of government regulations and the availability of cheaper properties are contributing to long-term growth in the real estate market.

Russian buyers prefer villas to apartments, with 67% of Russian expatriates saying they have purchased a villa, compared to 30% of other buyers who preferred this more luxurious option.

The report also noted the trend of real estate advertising on social media and the effectiveness of agents who offer not only property listings but also investment information, market trends and exclusive offers.

The UAE is the country with the largest population of foreign nationals. Emiratis themselves make up only about 10% of the UAE's population, with other nationalities, mostly South Asian, making up the rest. The U.S. Treasury Department has expressed concern that the UAE (as well as other countries such as Turkey) is allowing Russian oligarchs to invest in expensive assets, which in some cases they see as circumventing sanctions. The UAE, and other Gulf states, are among the few countries that have refused to enforce Western sanctions on Russian banks and citizens.