A significant rise in investors from Russia and other CIS countries bodes well for the UAE’s luxury property market
Dubai has long been a magnet for the world's ultra-rich. The UAE’s low crime rate, excellent healthcare system and low tax rates make the country appealing to millionaires, predominantly from India, Nigeria, Saudi Arabia and Europe. Now, a recent influx of foreign investors, particularly those from Russia and other CIS countries, has boosted the UAE’s property sector.
The surge in the number of CIS entrepreneurs and billionaires moving to the UAE has led to a significant rise in demand for luxury real estate, with most buyers looking for high-end waterfront abodes and ready units.
The UAE maintains a strong, strategic partnership with Russia, a relationship that continues to grow. This, coupled with a stable, upward-looking market and the recent Golden Visa reforms, has attracted Russian wealth. In fact, property purchases in Dubai by Russians surged by a staggering 67% in the first quarter of 2022, as per the Dubai Land Department.
“Wealthy Russians are seeking to shift funds to Dubai that are now in Switzerland or London,” a senior banker at a large, Swiss private bank and a lawyer familiar with the matter said.
Corroborating this, a Dubai-based lawyer’s firm has received multiple inquiries from Russian entities asking how best to transfer assets to the UAE. Several Russian nationals with accounts at private banks have now opened accounts in the UAE with the same institution, while others have looked to transfer their assets to local UAE banks.
Russians are also looking to diversify their investments, investing considerable amounts of money in real estate and buying into funds that do not disclose ownership details.
In June, a report by Henley & Partners, a London-based investment firm, said that the United Arab Emirates would be the world's top destination for ultra-wealthy individuals this year. It noted that the country could potentially expect to welcome 4000 new millionaires.
