The United Arab Emirates is one of the most stable regions from a political and economic point of view. This is what attracts new investors every year. Among the emirates, Dubai, renowned for its success and openness, has emerged as the primary point of attraction. Year after year, Dubai strengthens its position as the main business and tourist hub of the UAE. The real estate sector plays a vital role, which makes a huge contribution to the economy of the UAE.
In this context, we will dive into the demographic of those who most frequently invest in real estate in Dubai.
In 2022, Russian citizens, who were previously considered a niche group of players in the market, emerged as the most active buyers of Dubai real estate. The report from Betterhomes show interesting numbers: more than 86,000 sales for last year, surpassing the previous record of 80,000 sales recorded in 2009. The total value of real estate sold in the emirate in 2022 amounted to about AED 208 billion ($56.6 billion), representing an increase of almost 80% compared to 2021. Analysts attribute this rapid growth to a migration wave from Russia.
British citizens rank second in the list of real estate buyers, with Indians, Italians, and French also among the top five. Additionally, active investors in Dubai’s real estate market include residents from Germany, Canada, Pakistan, and Lebanon.
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Previously, Chinese citizens held one of the top positions in this ranking. Due to the information from the People’s Republic of China about the local new wave of coronavirus, the movement of Chinese citizens around the world has been limited. It is anticipated that the flow of investments from Asia will likely increase again once the epidemiological situation stabilizes.
Experts attribute the popularity of the Dubai real estate market to its attractive features, including security, investment opportunities, and its location and tourism.
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The demand for real estate in Dubai primarily revolves around three main objectives:
Dubai’s unique blend of opportunities and benefits continues to make it an attractive and sought-after real estate market for people from various backgrounds and objectives.
Capital diversification is another primary motivation for investors eyeing long-term prospects. Acquiring prestigious properties within premium complexes attracts wealthier buyers, enticed by the favorable investment climate, low taxes, and the potential for property values to rise in tandem with market growth.
Dubai’s growth prospects receive further assurance from the recently adopted Dubai Development Plan 2040 (Urban Master Plan 2040). This ambitious plan involves intensive construction and substantial billion-dollar investments, bolstering confidence in the emirate’s real estate market’s potential for the future.
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The Dubai real estate market maintains robust growth, but there are expectations that housing prices will stabilize following a significant surge. In light of the global geopolitical situation, Russian investors are likely to remain prominent, though analysts acknowledge that, with the easing of exit restrictions in China, buyers from Asia might emerge as competitors in the market.
