Gaurav Aidasani Claims That If Anything, European and Russian Buyers Increased Their Activity in Q4–22
Those overseas buyers must continue if the real estate market in Dubai and the UAE is to maintain its momentum through 2022. Developers are investing significant resources in new launches. Because they anticipate a repetition in 2023 and are not particularly concerned with the difficulties of the real estate market.
An important portion of the money invested in local real estate this year came from foreign investors who were drawn to the UAE. Because of its reputation as a safe haven. A location with a secure operating environment where investments can be protected.
More hints of this inbound cash flow looking for just the right address were revealed in the fourth quarter of 2022. Whether it was at an Emaar project, a villa from Damac, a signature penthouse from Omniyat, chic waterside flats from Sobha, or a community from MAG or Azizi. The importance of “Brand Dubai” and “Brand UAE” was paramount.
That is the final address. The founder and managing director of Union Square House, Gaurav Aidasani, discusses this pull factor in an interview.
1. How Much Of The Claim That Buyers From Russia And The CIS Have Been Active In This Market Since March Is True? If True, Are These Members Of The Russian Diaspora Investing?
Dubai has long been a favorite vacation and investment destination for Russians, even before the turmoil in Ukraine. For centuries, Russians have travelled to the emirate in winter to take advantage of the climate and beaches. Investors and homebuyers from Russia and the other 11 CIS nations have increased their purchases of real estate in Dubai since the pandemic began to abate in early 2022. The demand increased by roughly 50% from the prior year as we approached the end of the first quarter of 2012.
Russians realized the value of tying their wealth to the dollar or foreign assets when the value of the ruble fell earlier this year. This confirmed their preference for Dubai as a prime location for investments. Where they can protect themselves against currency devaluation and profit from the ongoing dollar rise.
2. Which Other Locales Are Seeing An Increase In Demand, Except The Palm, Which Has Traditionally Been A Popular Destination For Russian Buyers?
Investors have always been drawn to waterfront properties. Russian buyers are particularly interested in Emaar Beachfront, Bluewaters, Bvlgari Island, Marina, and La Mer, among other areas. In the midst of sizable villa communities, a number of Dubai developers have begun constructing lagoons and man-made beaches. Which have attracted a lot of interest from Russian investors. In fact, investors of all nationalities are interested in waterfront living in the middle of the desert.
3. Are Ready Homes Preferred? Do All Of These Transactions Involve Readily Available Cash?
There is undoubtedly a greater demand for completed homes. Due to flexible payment options, the price of off-plan real estate is likewise at its highest point in recent years. However, because it is so difficult for non-residents to obtain mortgages, homes from developers are frequently sold through payment plans. Ready homes on the secondary market are traded in cash.
4. Aren’t These Buyers Having Trouble Raising Money To Purchase Real Estate In Light Of The Restrictions?
Numerous Russian investors in Dubai have some of their money abroad. Although cryptocurrencies might be less liquid than other asset classes, others have made significant investments in them. However, they could easily convert it to cash flow. Additionally, many Russian investors had already moved money out of the country before the conflict even began. When banking lines were still available.
5. How Should A Foreign Investor Set Up Their Purchase Of A Property Here? Should They Choose Off-Plan Or Ready?
Off-plan and ready properties each offer advantages over the other. Whether a buyer is searching for a property to reside, use on vacation, rent out, or resale depends entirely on their needs. More interested in ready properties would be someone looking for quick returns.
6. Are Dubai’s Developers Running Special Campaigns With These Buyers In Mind?
The Dubai market is currently at its best in terms of demand. Promotions are hardly ever necessary in order to sell. The demand for premium and luxury goods continues to outpace supply, and there is really a staffing shortage.
7. Are Developers Asking For A Sizable Upfront Payment Out Of Concern For Defaults And Transfer Restrictions?
Dubai’s market is very well-regulated, and there are specific laws that safeguard both consumers and developers. In an upscale environment like the one we currently live in, developers do not place a high priority on making sizeable down payments because of the threat of defaulting on future payments. During a market downturn, such caution is more likely to be exercised.
8. Since October, Have You Noticed A Decrease In CIS Buyers?
This year, there has not been a decline in these buyers. We are currently observing a rise in European buyers. The most recent statistics show that Russians are now the second-largest group of investors in Dubai, after European buyers.