Confluence of Factors Drives Demand For Dubai Properties
Elias Hannoush, Managing Director of Morgan’s International Realty, said the Russia–Ukraine war undoubtedly had a positive impact on the real-estate market in Dubai, but it was not the sole driving force behind the recent boom. He attributed it instead to a “confluence of factors”, including positive sentiment around the way the government had handled the pandemic, increased access to residency for investors, and post–Expo 2020 and FIFA World Cup momentum, which has kept high net-worth investor attention on the region. Skyrocketing property prices in Dubai mean that some Russian investors have made investments since the start of the war, then sold them at a profit, a practice known in the real-estate world as ‘flipping’. Those buying are spending around $1 million on average (UAE dirhams 3.67 million) per property, although some wealthier investors have bought as many as 10 units at that price. The investors range from those fleeing high interest rates or economic uncertainty to “big money” VVIPs, who include Russians looking for a safe haven for their money or to relocate, he said. He also observed that the “flood” of Russians has brought other opportunities for more Russian nationals to relocate, including the younger generation of social media influencers, tech startup founders, blockchain and cryptocurrency firm employees who are moving businesses to the city to cater to growing demand. Real-estate agencies and agents who are heavily focused on selling to Russian clientele have also been coming to the fore, he added. The market has not yet reached its peak. Off-plan properties offering a hedge against higher interest rates as well as luxury homes are likely to be prominent. There will also be increased domestic sales demand as rising rental prices lead residents seeking more stability to consider buying.
Tags : Elias Hannoush Managing Director Morgan’s International Realty Russia-Ukraine war real estate market Dubai