Dubai continued to be a prime target for real estate investors during the first half of the year as stockholders piled in – Russians were among the top five buyers, while Pakistanis grabbed the eighth place – as the emirate aids from a flood of wealth following Western sanctions.
The first half witnessed residential real estate transaction volumes up 60% with an 85% increase in the value of the property sold, property consultancy Betterhomes revealed in its report.
India, the United Kingdom, Italy, Russia, and France, remained the top buyers, as per the report.
Subsequently, Canada, the United Arab Emirates, Pakistan, and Egypt were in eighth place, then Lebanon and China remained in ninth and tenth places respectively.
Demand was increased by geopolitical uncertainty in Europe and mortgage buyers looking to get in before well-telegraphed interest rate hikes as central banks tackle inflation, Betterhomes added.
Media reported earlier this year that Russians were pouring huge money into Dubai real estate as they seek a financial haven in the wake of Western agreements with 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.
Moreover, during the first half of the year, a record 37,762 units were sold, and the total transactions in the residential property market amounted to almost 89 billion dirhams ($24.23 billion), it added.
Dubai’s property market started recovering from 2020’s critical downturn early last year with buyers snapping up luxury units as the emirate reduced pandemic restrictions faster than most cities all over the world.
In October, S&P Global Ratings stated that Dubai’s real estate recovery was crumbly and uneven, and an oversupply of residential properties would cause pressure on the prices in the long run.
Luxury property transactions went up 87% against the first half of last year, however, apartments made up 62% of all transactions, Betterhomes said.
Furthermore, investors ruled sales, making up 68% of all buyers, up 10% agaisnt a year earlier.