One in five queries for Dubai homes from Russians

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Russian speaking investors continue to look to the emirate’s real estate for deals, as the ongoing Russia-Ukraine conflict intensifies

Investors from Russia and the 11 other Commonwealth of Independent States (CIS) countries now represent more than 20 percent of potential homebuyers in Dubai. The average ticket size ranges from AED 2.5 million ($680,000) for individuals and AED 25 million for high-net-worth individuals (HNWIs), according to research published this week by Dubai-based residential property consultancy Mira Estate. 

“The real estate investor pool in Dubai is shifting to a Russian-speaking set. We were able to quantify this shift and measure it by looking at the number of real estate leads we generate, as individuals registered their interest in our property offerings across the city over the past four months,” said Tamara Getigezheva, CEO and partner, Mira Estate. 

“Eastern Europe is witnessing an unprecedented level of geo-political instability, which has led to an influx of investors and families entering Dubai, not only from Russia, but more so from other CIS countries.” 

The new UAE golden visa rules are further driving demand for properties among CIS investors in Dubai, according to Mira Estate. The 10-year Golden Residence visa will be granted to investors from September 2022 onwards which will likely drive further demand. 

The UAE’s Golden Residence Visa programme, which was first implemented in 2019, enables expats to live, work, and study in the UAE without the need of a national sponsor and with 100 percent ownership of their business on the UAE’s mainland.

Mira Research’s latest data is backed up by other Dubai-based property experts. 

In early May, AGBI reported that data released in April from real estate brokerage Better Homes showed that property purchases by Russians in Dubai surged 67 percent in the first quarter of 2022.

“Russian [buyers] mainly go for luxury branded products,” according to Saleem Karsaz, group CEO of Aeon and Trisl Real Estate.

“Anything which is branded with a designer or hotel label is doing well. In these times, we’ve seen the St Regis Residences being sold out, Atlantis the Royal Residences and One by Omniyat sold out, and Emaar Beachfront increasingly close to being sold out – with most purchases from Russia.

“There’s always a buyer for these luxury properties. They’re not just rich, they’re super-rich. These are the 100-million dollar [club] or billionaires from the Russian part of the world – and there are not just a few, there are a lot of them.”

After weeks of bombardment, citizens of Ukraine and other Eastern European countries, including Moldova, have also been seeking refuge in the UAE.

“Ukrainians are also coming in,” Kunal Kukreja, senior property consultant at Dubai-based real estate brokerage Union Square House, told AGBI. “But they are looking at the communities rather than the sea-facing properties because it’s more affordable… places towards the Al Qudra Road like Damac Hills, Arabian Ranches and Town Square. 

“Adding to that, people from other neighbouring countries, like Moldova, [are] also starting to put money in here with the fear that Russia might attack them.”

Dubai has for years been regarded as a ‘safe haven’ for foreigners and today is home to people of over 200 nationalities.