The Russian property boom in Dubai appears to be over.
Russian purchases of Dubai real estate have been slowing down over the last few months, brokers say, during a year in which the ruble lost a third of its value. Meanwhile, there’s a natural ebb after a flurry of buying in the year following the Ukraine invasion, according to the brokers, and some Russians who have resettled here decided Dubai just wasn’t for them and have moved on.
Russians traditionally have been fans of United Arab Emirates property, but they really flooded into the market in 2022, when international sanctions squeezed Russia’s economy and finances after the country’s invasion of Ukraine. They were part of a post-pandemic market boom that’s pushed home prices up about 30% in the past two years to September, according to CBRE Group Inc.
One luxury broker says Russians have become net sellers at his firm, repatriating money after big gains in the emirate’s red-hot property market or getting out of deals they can no longer afford.
“They’re taking profits,” said Abdullah Alajaji, founder of Driven Properties, whose Russian clients bought 146.5 million dirhams’ ($39.9 million) worth of real estate in June through August and sold 276 million dirhams’ worth in the same period.
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