Russians have lost interest in rising real estate prices in Dubai – Kommersant
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The demand for real estate in Dubai, which arose among Russians after the outbreak of hostilities in Ukraine, has sharply declined in the past few months. Writes about this Bloomberg with reference to surveyed brokers.
Among the reasons for the decline in sales, brokers cite the weakening of the ruble against the dollar, an increase in the cost of real estate in Dubai by about 30% over the past two years, as well as disappointment in life in the city. According to one of Bloomberg’s interlocutors, Russians have become more likely to sell real estate purchased on a “hot market” or abandon previously concluded transactions. The head of Driven Properties, Abdullah Aladjaji, said that from June to August, Russian clients purchased real estate in Dubai for a total amount of $39.9 million, and sold it for $75.1 million.
The founder of the brokerage company Whitewill, Oleg Torbosov, also cited the decision of some Russian banks to reduce currency transfer services, including restrictions on monthly sending of funds to the United Arab Emirates (UAE), as a reason for the fall in demand for real estate among Russians.
According to the brokerage company Betterhome, Russians ranked fifth in the number of residential real estate transactions in Dubai among foreign buyers in the third quarter, while in the second quarter they were third. Bloomberg notes that the greatest drop in demand is observed in the luxury real estate market.
“Russians bought expensive real estate last year. They didn’t ask the question – $10 million, $15 million, whatever. They bought. But now, at this level, they are no longer buying,” said Unique Properties CEO Arash Jalil. According to his estimates, the number of transactions carried out by Russians in his company decreased by 15%, and the volume of money fell by 50%.
CBRE estimated that average home prices in Dubai increased by 20% year-on-year in August. Such dynamics have not been observed since November 2014. The CBRE report shows that the UAE real estate market has begun to recover amid an influx of crypto millionaires and bankers from Asia, as well as wealthy Russians who are seeking to protect their assets.
Read more in the Kommersant FM article. “Dubai set a record”.
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