DUBAI: Dubai’s red-hot property market surged in the first half of this year as investors piled on. Russians are among the top five buyers as the emirate benefits from wealth inflows following Western sanctions.
Residential real estate transaction volumes rose 60% in the first half of the year, with prices of properties sold up 85%, according to property consultancy Better Homes.
The top buyers were India, UK, Italy, Russia and France, followed by Canada, United Arab Emirates, Pakistan and Egypt in eighth place, followed by Lebanon and China.
The number of Russian buyers surged 164% from the first half of 2021 to the first half of this year, Betterhomes said in an inquiry. The figures for France and the UK increased by 42% and him by 18% respectively, while the figures for India fell by 8% for him and Italy by 17% for her.
Market soars 60% as investors flock.Top 5 buyers from India, UK, Italy, Russia and France
Better Homes said demand was driven by geopolitical instability in Europe and mortgage buyers looking to preempt a well-publicized rate hike.
It was reported earlier this year that Russians were pouring money into real estate in Dubai following Western sanctions against Moscow over its invasion of Ukraine.
“The market is facing headwinds from rising interest rates and a strong dollar, but it has proven to be strong so far with little sign of a slowdown,” Better Homes said.
Citing data from the Dubai Land Authority, a record 37,762 units were sold in the first half of this year, bringing total residential property market transaction value to around AED 89 billion ($24.23 billion).
Dubai’s property market began recovering from a deep recession in 2020 as buyers bought luxury units early last year after the emirate eased pandemic restrictions earlier than most cities around the world.
However, S&P Global Ratings said in October that Dubai’s property recovery was volatile and uneven, with a housing oversupply likely to weigh on prices in the long term.
Luxury real estate deals are up 87% from the first half of last year, with apartments accounting for 62% of all deals, according to Better Homes.
Investors dominated sales, accounting for 68% of all buyers, up 10% year-over-year.
Released at Dawn on July 30, 2022