Media ININ Economy We Trust
September 28
Russian investors have become major investors in real estate in Dubai, after their reluctance to enter the European and North American markets. These investors are working to transform into real estate developers, or acquire residential real estate complexes to build small communities that mimic their home in Dubai.
The UAE has also become a major destination for Russian tourists and investors since the beginning of the war in Ukraine in February 2020.
Alexander Timofeev, director of customer service for projects under development at Better House, said in an exclusive interview with the Arabian Gulf Business Insight platform that he had witnessed a “significant” increase in interest from Russian investors looking for plots of land to develop luxury villas or palaces.
He continued: Russian clients are particularly attracted to exclusive locations, such as Emirates Hills, Dubai Hills and Palm Jumeirah, where they can enjoy privacy and luxury, and according to Timofeev, the average price of land plots in these areas is about 50 million dirhams ($13.6 million), according to Timofeev.
He added: “The sector is also witnessing an influx of wealthy Russians with experience in the real estate development sector, and the majority of them are keen on developing residential properties and distinctive hotels, and raising the level of construction quality in Dubai, while some investors choose a strategy of acquiring many homes and villas, renovating them, and then selling them to achieve Profit.”
In the first half of 2023, Dubai saw residential property prices rise at their fastest rate in nearly a decade, rising by 16.9% year-on-year, while villas surpassed previous records set in 2014.
Better Homes revealed last July that during the second quarter of this year, Russian investors ranked third on the list of the largest buyers in Dubai in terms of nationality, after Indian and British investors.
Nick McLean, managing director of real estate consulting firm CBRE MENA, also revealed to the Arabian Gulf Business Insight platform this week that some research indicates that Russians are now topping this list.
He said: “I expect that some will enter the real estate development sector if they are able to extract the capital they have in Russia, and with the conditions on owning real estate in some areas, it is likely that Russian investors will want to partner with investors from the Emirates.”
Akshay Jayapraksan, associate partner at research firm Redsteer Consulting, told the Arabian Gulf Business Insight platform that Russians are more likely to buy rather than rent compared to other nationalities, and added that their average spending on real estate is nearly double that of other nationalities, reaching $1.1 million.
