Wealthy Russian buyers are fueling UAE real estate boom. Russian buyers are expected to continue fueling the real estate boom in the UAE in the short term. They are purchasing more and more expensive properties than other buyers.
With rent prices soaring in the UAE, locals and expatriates alike are increasingly looking towards buying property. Which also doubles as a sound investment.
Russians have been following that trend, with 72% of Russian expatriates in the UAE reporting that they bought property within the last year. That is according to a market research survey conducted by consulting firm Redseer.
“Russian expats are increasingly settling in the UAE due to its stable economy and politics, making it a safe haven for high-net-worth individuals seeking refuge from conflict-exposed regions,” said Akshay Jayaprakasan, an Associate Partner at Redseer.
The Russian invasion of Ukraine has resulted in Russian citizens being bombarded with sanctions from most Western countries. Economic obstacles have made things more difficult. So oligarchs and other wealthy Russians have been looking for anywhere that might still be open for business.
Wealthy Russian buyers are fueling UAE real estate boom
Short term growth will continue to come from Russian expats. While long term growth will be carried by local buyers, according to the report. Along with rising rent costs, government deregulation and more affordable properties will all contribute to long-term growth in the real estate market.
Russian buyers were far keener on villa-style properties than apartments, with 67% of Russian expat respondents saying they purchased a villa, versus only 30% of other buyers that bought this more luxurious option. The survey also showed that 64% of Russians were buying a second property, while other nationalities were overwhelmingly buying a primary property.
This data helps characterise the type of client the average Russian in UAE is: wealthy and looking to invest large sums of money. In fact, Russian expats spent a whopping 98% more on real estate purchases than other buyers.
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