People from Russia had been among the top real estate investors in the emirate since the start of the conflict in Ukraine
Purchases of Dubai real estate by Russian investors have been slowing in the third quarter of the year, after a sharp spike in the previous months, Bloomberg reported on Tuesday, citing top Dubai brokers.
According to the report, instead of net buyers, Russians have now become net sellers of real estate, aiming either to repatriate the money gained on the Dubai property market rally or abandon mortgage deals they cannot afford due to a rise in local prices.
“They’re taking profits,” Abdullah Al Ajaji, founder of Driven Properties real estate firm, told the outlet. His Russian clients bought 146.5 million dirhams ($39.9 million) worth of real estate over the summer, while selling nearly twice as much ($75.1 million) in the same period.
Some industry experts link the drop in home purchases by Russians with the slump in the ruble exchange rate over the past year. Others, however, point to a natural slowdown in demand.
“People who have money already bought last year,” Oleg Torbosov, founder of real-estate brokerage Whitewill, told Bloomberg.
Brokers complain the luxury property market is taking the brunt of waning Russian interest.
“Russians, they used to buy high-ticket [properties] last year… They were not questioning: $10 million, $15 million whatever. They were buying. But now, that tier – they’re not buying anymore,” Arash Jalili, CEO of Dubai-based brokerage Unique Properties, told the outlet. He said the number of transactions between his firm and Russians had dropped 15% since last year, while the value of the transactions plunged 50%.
Russians sharply increased property purchases in Dubai after Ukraine-related sanctions effectively barred them from investing in Western countries. According to earlier reports, investors from Russia were the largest buyers at Emaar Properties, Dubai’s major developer, in the first half of the year.
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November 08, 2023 at 12:31PM