Super-Rich Russian and Chinese Investors Flock to Dubai for Elite Real Estate

Amid rising geopolitical tensions, Dubai’s elite real estate sector is attracting significant capital from Russian and Chinese investors seeking a safe haven for their wealth.

The increasing interest from investors in Russia and China has led to exponential growth in the UAE real estate market, particularly in Dubai’s elite property segment, according to industry insiders.

In the face of geopolitical tensions and economic uncertainty in their home countries, wealthy individuals from Russia and China are turning to Dubai for high returns and a secure haven for their capital.

Russian and Chinese investors, in particular, are actively purchasing real estate in Dubai, with transaction volumes significantly higher compared to the previous year.

This influx of investment has led to a considerable increase in prices in Dubai’s elite real estate segment. In Al Barrari, the number of real estate transactions in investment properties increased by 400%, with the majority of buyers being ultra-high-net-worth citizens from Russia and China.

The growing demand is also reflected in transaction volumes. Over the past year, the volume of off-plan property transactions in Abu Dhabi and Dubai has increased by 94.1% and 43.3%, respectively.

When it comes to elite real estate, both Chinese and Russian communities play a significant role. However, in early 2022, after the conflict with Ukraine, Russians began to dominate property sales.

“Chinese investments reached a historic maximum, accounting for 13-14% of total sales. In 2022, they decreased to 4%, but this year, they have risen to 8%.”

Among the most popular investment areas for Russians are Dubai Marina, Palm Jumeirah, and Jumeirah Beach Residences. Their Chinese counterparts prefer locations such as Jumeirah Golf Estates, Downtown Dubai, and The Springs.

Russians Contribute to the Growth of Short-Term Rentals in Dubai

Russians are also increasingly turning to short-term housing rentals.

“The surge in the number of Russian tourists wanting to rent short-term accommodation in Dubai began even before the pandemic. Starting in October 2019, it became evident that a significant portion, about 80%, of the clientele was of Russian origin.”

“Their preference for Dubai as a tourist destination is due to the favorable climate and the numerous attractions in the region.”

In 2022, the strong demand for short-term rentals was primarily driven by Russian tourists. Besides the demand resulting from the FIFA World Cup in the last quarter of the previous year, the growth in bookings by Russian tourists was mainly due to the ongoing geopolitical tensions related to Ukraine.

“Last year, approximately 45% of our bookings were from Russian tourists, and this trend seems to continue, as evidenced by current reservations.”