The Russians were looking for Dubai real estate. The ruble fell, someone left the Emirates

The Russians were looking for Dubai real estate. The ruble fell, someone left the Emirates
The Russians were looking for Dubai real estate. The ruble fell, someone left the Emirates

Rusov are traditional owners of real estate in the United Arab Emirates. In 2022, when international sanctions hit the economy there after the invasion of Ukraine, they literally flooded the market. According to the company CBRE Group, they were the first part of the post-pandemic boom in the Emirates. In the last two years, he has increased real estate prices by roughly a tenth. The information was brought by the Bloomberg agency.

Abdullah Alajaji, founder of Driven Properties, is one of Dubai’s luxury real estate magnates. He claims that Russians, who repatriated their pensions after making big profits on the real estate market in the Emirates or gave up their businesses, are now getting rid of real estate they can’t afford. First, through his company rut, clients bought real estate for a total of 920 million crowns in June and August of this year. In the same period, they sold bags for 1.7 billion crowns, add.

What happened, no

While according to the company Emaar Properties PJSC, the first Dubai developer, Russian purchases continued even in the first half of 2023, in the last few months the dampening began to show. They reported that there were fewer buyers with Russian passports or those from intermediary countries such as Cyprus, St. Kitts and Nevis or Malta. For example, the Makla company Betterhomes reported that the Russians were the fifth largest foreign buyer of residential real estate in Dubai in this quarter of 2023. This is a decrease from the first place in the same quarter of last year according to the volume of transactions.

Russians bought real estate at a high price last year, confirms Arash Jalili, general editor of the Dubai real estate company Unique Properties. According to him, they never asked whether the price was ten or fifteen million dollars. Don’t buy from them, dov. Makl estimates that the number of Russian shoppers in his company has dropped by 15 percent and the value of their transactions has halved.

The weakening Russian interest in real estate in the Emirates, however, according to the rules, has been developed by outside investors from other parts of the world. There are Europeans, Americans, and people from Singapore who are interested in buying real estate in the UAE for tax and security reasons, Alajaji said. According to him, in the traditional role of the most important buyers are the Indians and the British, so few buyers are returning to the market after the pandemic.

Who could, u bought, k makl

Russian Oleg Torbosov opened his real estate office called Whitewill in Moscow in 2016. He expanded to Dubai in March 2021, i.e. a year before the Russian invasion of Ukraine. k e rut buyers should therefore be interested in real estate, especially on the Dubai islands near the Atlantis the Royal hotel complex or on Bluewaters Island, located near Dubai’s Palm Jumeriah island. First, it’s a place where you can now hear the routine. if you need a Russian visa on Bluewaters, a real estate agent is allowed.

In 2022, buyers rushed to buy an apartment first at Bluewaters. According to data from CBRE, real estate prices per square meter rose by 41 percent in the first half of this year alone. It was then that rut buyers became Torbosov’s main clients. They even overtook the British and Indian armies. Now the prices are going down. According to his company’s data, Rusov fell from the number one largest client to ninth place. And this despite the fact that I have a strong clientele from Russia and the former Soviet states.

There are several reasons for this, explains Torbosov. First, people who have pensions bought from last year. In other words, it is a natural slowdown in demand. According to him, some Russian banks, except for the best clients, have canceled money transfer services or limited the amount of money that can be used.

Don’t even pay

According to the real estate agent, some rut buyers are trying to back out of two closed deals. The prices are now much higher than the original price. In the rapidly developing Dubai, people put down a deposit on real estate between ten and twenty percent of the price, and that’s before construction begins. Rut clients, who signed contracts for these or those units before construction, are now trying to sell them, confirms Makl Alajaji. According to him, in some cases the Russians sell these fakes at a loss, and sometimes even fail to fulfill their obligations.

Someone who a year ago made a 10 percent deposit on a property worth 10 million dollars must now expect to have to pay the remaining nine million. That is suddenly not 550 million rubles, but about 833 million rubles. According to Makle, this is the main reason why some Russians are slowly repatriating their pensions in order to invest them in businesses at home.

Torbosov says that in such a situation, his clients probably cannot easily find a buyer, nor would they suffer a loss. If it is not a finished building, it is now very difficult to sell it, the Russian magnate concluded, according to Bloomberg.

The article is in Czech

Tags: Russians Dubai real estate ruble fell left Emirates


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