Dubai luxury property in ‘short supply’ with Russian demand for high-end real estate

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Luxury properties in Dubai are in “short supply” with an influx of Russian money contributing to a rising demand for more high-end and better-quality properties, according to real estate firms.

Over the last five years one real estate firm – CHI Sol Investments Limited – has moved from selling properties between five million to ten million AED ($1.36 million to $2.72 million properties) to apartments, flats and villas valued at more than 20 million AED ($5.45 million) after noticing a gap in the market.

“We decided to take a punt and move into that market and that’s proved successful for us, it’s a market in short supply,” Gavin Comerford, projects director at the company, told Al Arabiya English.

Projects that Comerford has worked on include the Hillside development at Jumeriah Gulf Estate in Dubai, with the company’s website also listing developments such as Emaar Beachfront and Palm Jumeriah developments under its list of real estate projects.

UAE property website Property Finder currently lists just under 89,000 homes for sale on its website, with just under 3,000 of those priced at more than 25 million AED ($6.81 million) – the closest listing to property prices at 20 million AED ($5.45 million).

Property website Dubizzle lists some 2,230 properties for sale at 20 million AED ($5.45 million) or more, out of total of just under 66,000 properties for sale on its website.

“We saw a market for it where there is not a lot of high-end [properties],” Comerford said.

One of the driving forces behind the demand for the so-called luxury properties is an influx of Russians coming into the UAE as many other countries have put sanctions on the country over its invasion of Ukraine.

“The conflict in Ukraine has also been beneficial to Dubai [economy],” said Comerford. “Let’s be honest the Russian money had really nowhere to go.”

The migration of “well off” immigrants during the Arab spring also led to an influx of wealthy people moving to the country, said Comerford, another factor motivating demand for the need for more luxury property.

“You are in the Middle East, so you have a lot of rich people,” he added. “Dubai is a crossroads to the world. You have a lot of people from within the GCC.”

As well as a greater demand for “high-end” properties, there is also a bigger need for so-called “turnkey” property – homes, apartments or villas where people can move in straight away, without having to furnish them.

“Then you’ve got property that’s ‘super turnkey,’ [equipped] down to the robes and toilet paper, where people can literally move into the property with their bags on that day,” he added.

In a sign that the UAE’s property market is thriving real estate could increase in value in 2023,

Robert Miles, a research analyst at the Dubai Investment Fund (DIF) global research departments in London told Al Arabiya English, with many investors looking to put their money in the real estate market.

Research from the DIF showed that to combat inflation – seen through the global cost of living crisis – 35 percent of investors in the UAE are interested in property.


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