The demand from Russians for real estate in Dubai is decreasing, but the demand from China is increasing - said the chairman of DAMAC.

real estateinDubaihas become one of the fastest in the world, fueled by investor-friendly reforms and a surge in demand from foreign expats, especially from Russia due to the outbreak of Moscow's all-out war with Ukraine. Some luxury properties in Dubai are specifically targeting Russian buyers, with theagenciesproperties that employ exclusively Russian-speaking staff, and in some parts of the Sunshine State, a visitor will hear more Russian than Arabic or English. However, this surge is beginning to slow, says DAMAC chairman Hussein Sajwani. The new increase in demand is coming from China.

“Russia has slowed down. But other countries are stepping up, especially the Chinese are coming back,”

- Sajwani said at the World Economic Forum in Davos, Switzerland, on Tuesday. He also mentioned Indians and Europeans.

”DubaiAs you know, it is surrounded by more than 100 countries with all kinds of problems and challenges.

And people want to migrate and come to Dubai to live or invest,” he said.

As China's economy faces challenges at home, Dubai is taking advantage of those who can spend money abroad. The largest developerDubaiEmaar Properties last year reported that Chinese investment accounted for 7% of total sales in the first six months of 2023, about double what it did a year earlier.

A real estate crisis, a slowing domestic economy and the lifting of travel restrictions after years of strict lockout policies are contributing to the wealthy Chineselooking foroverseas havens for their capital. Dubai's high rental income and favorable tax policies, as well as the UAE's refusal to participate in Western sanctions campaigns, make it an attractive destination, Sajwani said.

He added that Dubai has been able to remain stable and push back the initial anxious mood in the market after the outbreak of the war between Israel and Hamas on October 7, saying that the regional conflict has not hurt the emirate's real estate sector.

“So far, the UAE leadership has maintained a very good policy of remaining ... neutral to a certain extent, not getting involved in problems, in wars of this type. And economically, because we are one of the unique countries in the region, because of the lifestyle, security, stability, good laws, regulations, as you know, long-term golden visas and things like that,” he said, referring to the 10-year visa for expats actually introduced in 2019. “And so a lot of people are still coming and living in Dubai.”