In Dubai, the influx of Russians causes a real estate crisis

When war broke out in Ukraine in February 2022, the American company for which Andrei (a pseudonym) works closed its office in Moscow. This Russian financial advisor, in his thirties, had the choice of settling in Tashkent, the capital of Uzbekistan, or in Dubai, the commercial capital of the United Arab Emirates. The decision was made within weeks. From June, the man prepared the installation of his wife and their 1-year-old daughter in the principality of the Gulf, where Andreï had made several short stays in the past, the Emirates being, since the fall of the Soviet Union, one of the favorite destinations for Russians. Like all the countries of the Arabian Peninsula, the Emirates refused to join the Western sanctions against Russia, thus attracting a significant number of nationals from this country.

“I was in Europe last summer and everywhere I saw Ukrainian flags. It’s not easy to live in the West when you’re Russian. But here in the Emirates, being Ukrainian or Russian is neither a privilege nor a handicap. And, moreover, there are many professional opportunities there.explains Andreï, met mid-May in Business Bay, a business district of Dubai.

The man is far from an isolated case. In 2022, Russians were the biggest international buyers of Dubai property, according to property broker Betterhomes. “Some Russians buy real estate in the Emirates to shelter their money. The others settle there for real”, explains Luke Remington, general manager of the real estate agency Haus & Haus, active in Dubai. This company recorded, in 2022, a 125% increase in the number of Russian buyers compared to 2021. “To adapt to this new situation, we now have seven Russian-speaking agents, compared to two last year”explains the director.

Shortage of housing

This influx boosted the market. Average rents for apartments and villas, over the last twelve months, have increased by more than 25% according to CBRE, a business real estate advisory group. They amounted respectively to the equivalent of 2,160 euros and 6,430 euros, in April 2023. The most highly rated residential areas, such as Dubai Hills, have almost no more available accommodation. A resident of this neighborhood says that on several occasions, Russians came knocking on his door, offering to buy his home, in cash and at prices well above market prices.

You have 67.98% of this article left to read. The following is for subscribers only.

source site-29