Driven by higher demand from residents and bigger flows from outside buyers including Russians is bringing back Dubai’s housing boom. Total transactions reached 19,009 in the first 3 months of the year, which is the highest total ever recorded in the first quarter. Dubai’s property market is recovering from a 7-year slump helped by a combination of factors, including European investors worried about a potential surge in taxes at home and an increase in Russian buyers looking to safeguard their wealth.
Russians have long been big buyers of luxury homes in the glitzy emirate, traditionally featuring among the top 10 nationalities to invest in its real estate. Brokers say they’ve been snapping up property in recent months as their country faces sanctions over its invasion of Ukraine. The Middle East business hub has also emerged as one of the favorite destinations for some international firms. Despite the latest surge, prices remain far below their 2014 peak. The average price per square foot for an apartment in Dubai is 1,098 dirhams (S$405), while the rate for villas stands at 1,267 dirhams – 26.2 per cent and 12.3 per cent below the peak respectively.