Dubai: Dubai’s red-hot property market surged in the first half of the year as investors piled in, with Russians among the top five buyers as the emirate benefits from an influx of wealth in the wake of Western sanctions, Reuters reported on Friday.
According to a report by real estate consultancy Betterhomes, residential real estate transaction volumes increased by 60% and the value of sold properties increased by 85% in the first half of the year.
The top buyers were from India, the United Kingdom, Italy, Russia and France, in that order, followed by Canada, the United Arab Emirates, Pakistan and Egypt tied in eighth place, Lebanon and China.
It was reported earlier this year that Russians were pouring money into Dubai properties, seeking a financial haven in the wake of Western sanctions on Moscow over its invasion of Ukraine.
“The market has faced growing headwinds in the form of rising interest rates and a strengthening dollar but has so far proven to be robust with little sign of slowing,” Betterhomes said. In the first half of the year, a record 37,762 units were sold, it said, citing Dubai Land Department data, with residential property market transactions totalling nearly 89 billion dirhams ($24.23 billion).
Dubai’s property market began recovering from 2020’s severe downturn early last year with buyers snapping up luxury units after the emirate eased pandemic restrictions faster than most cities around the world.
However, S&P Global Ratings said in October that Dubai’s real estate recovery was fragile and uneven, and an oversupply of residential properties would pressure prices in the long run.
“Luxury property transactions were up 87% compared with the first half of last year, with apartments making up 62% of all transactions,” Betterhomes said.
Investors dominated sales, making up 68% of all buyers, up 10% compared with a year earlier.