Dubai’s enthusiastic property market rise in the first half of the year as investors accumulate, with Russians among the top five buyers as the emirate benefits from an inflow of wealth in the wake of Western authorization.
The first half of the residential real estate agreement volumes up 60 percent with an 85 percent rise in the value of properties sold, property consultancy Betterhomes said in a report.
The top buyers were from India, the United Kingdom, Italy, Russia, and France, in that order, followed by Canada, the United Arab Emirates, Pakistan and Egypt tied in eighth place, Lebanon, and China.
The number of Russian buyers rise 164 percent in the first half of this year from the first half of 2021, Betterhomes said in the feedback to an inquiry. The numbers for France and Britain rose 42 percent and 18 percent, respectively, while those from India fell 8 percent and Italy dropped 17 percent.
The requirement was enhanced by geopolitical uncertainty in Europe and contract buyers looking to get in ahead of well-telegraphed interest rate hikes, Betterhomes said.
It has been reported earlier this year that Russians were pouring money into Dubai properties, seeking a financial haven in the wake of Western authorization on Moscow over its invasion of Ukraine.
“The market has faced growing headwinds in the form of rising interest rates and a strengthening dollar but has so far proven to be robust with little sign of slowing,” Betterhomes said.
In the first half of the year, a record 37,762 units were sold, it said, citing Dubai Land Department data, with residential property market transactions totaling nearly 89 billion dirhams ($24.23 billion).
Dubai’s property market began recovering from 2020’s severe downturn early last year with buyers snapping up luxury units after the emirate eased pandemic restrictions faster than most cities around the world.
Yet, S&P Global Ratings said in October that Dubai’s real estate recovery was breakable and irregular, and an overage of residential properties would pressure prices in the long run.
Luxury property transactions were up 87 percent compared with the first half of last year, with apartments making up 62 percent of all transactions, Betterhomes said.
Investors dominated sales, making up 68 percent of all buyers, up 10 percent compared with a year earlier.