Bloomberg reported the end of the Russian real estate boom in Dubai

Russians have ceased to be the main buyers of Dubai real estate and are now increasingly getting rid of assets, local brokers told BLOOMBERG . Among the reasons are the fall of the ruble and rising prices for local real estate in Dubai

Since the beginning of the Russian special operation in Ukraine , there has been a “boom” in real estate purchases by Russians in Dubai, but in the last few months sales have dropped sharply, Bloomberg writes, citing surveyed brokers. Earlier, Russian FORBES wrote about this .

Among the reasons, brokers cite the weakening of the Russian currency against the DOLLAR, an increase in the cost of real estate in Dubai by about 30% over the past two years, as well as disappointment in life in the city. One of the agency’s interlocutors clarified that Russians have begun to more often sell real estate purchased on a “hot market” or refuse transactions concluded earlier.

The HEAD of the local real estate agency Driven Properties, Abdullah Aladjaji, explained that from June to August, Russian clients purchased real estate in Dubai for a total of $39.9 million, and sold for $75.1 million. Brokerage company Betterhomes calculated that Russians were the fifth most important foreign buyers residential real estate in Dubai in the third quarter compared to first place in the same period last year.

As Bloomberg notes, the greatest drop in demand among Russians is observed in the luxury real estate market. “Russians bought expensive [real estate] last year. They didn't ask the question - $10 million, $15 million, whatever. They bought. But now, at this level, they are no longer buying,” said Unique Properties CEO Arash Jalil. According to the realtor, the number of transactions made by Russians in his company fell by 15%, while the volume of money decreased by 50%.

The founder of the brokerage company Whitewill, Oleg Torbosov, named among the reasons for the fall in demand for real estate among Russians the decision of some Russian banks to reduce currency transfer services, for example, by limiting the monthly amount available for sending to the UAE.

At the same time, brokers surveyed by Bloomberg note that, despite the fall in demand for real estate among Russians, more and more Europeans, Americans, Chinese and Singaporeans are entering the local market. The main buyers remained Indians and the British, but a noticeable increase after the covid-19 pandemic has also been observed among the Chinese.

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Last year, many Russians considered Dubai and the UAE as a “backup airfield”: real estate in the country was purchased for relocation and long-term residence. “Today it is no longer just buying an apartment, but the relocation of capital, family, business through real estate,” Ekaterina Rumyantseva, founder of the Kalinka real estate agency, told RBC in January.

According to the company, apartments were the most popular among Russians at that time: their share in total sales was about 70%. Next come villas and commercial properties. The average purchase budget of Russians in Dubai last year was about 47 million rubles. (2.5 million dirhams). The range of purchases was from 9.3 million rubles. (500 thousand dirhams) for budget studios up to 375.5 million rubles. (20 million dirhams) for premium properties.

Buyers of Dubai real estate among Russians were mainly wealthy citizens. According to PARUS RealEstate, more than 50% of clients from RUSSIA are businessmen who opened companies in Dubai to diversify their business ; many were also looking for offices and relocating some of their employees. Experts from Intermark Real Estate called the main goals of Russian real estate buyers in Dubai the withdrawal and placement of capital in safe assets, opening a bank account and obtaining a residence permit.