Foreign Investors Big Factor in Dubai 2023 Real Estate Growth

For Dubai and the UAE's real estate market to stay strong and continue its progress towards 2022, foreign investors must remain dedicated to buying property. Developers are confident that the market will remain strong in 2023 and are investing heavily in new projects, showing that they are not worried about the potential for fluctuations in the market.

This year, a lot of money was invested in UAE's real estate market from global investors looking for a safe place to put their money. These investments were made because they felt that the UAE had a secure, reliable environment to do business in.

In the fourth quarter of 2022, more investors focused on Dubai and the United Arab Emirates to buy property. Whether it was a luxurious villa from Damac, a high-end penthouse from Omniyat, an elegant apartment from Sobha, or a community from MAG or Azizi, all that mattered was the prestigious name of the city and country. 

Russian Investors Are Leading the Way

This is evidenced by the Russian diaspora, where there has been a surge in real estate investment and home buying from Russia and the other 11 CIS countries in Dubai. In the last quarter of 2021, the interest in Dubai's real estate market has grown by half compared to the previous year.

Russians have become aware of the need to protect their money from the ruble's devaluation, as it has decreased in value since the start of the year. To do this, they are investing in the US dollar or assets overseas, particularly in Dubai, as it allows them to guard against further devaluation, and the dollar is likely to keep increasing in value.

The Russian diaspora has increased interest in homes ready for occupancy. Simultaneously, the demand for off-plan properties is also at its peak due to its generous payment plans. Those from the secondary market are often purchased in cash, whereas those from developers can be bought through installment plans as it can be challenging for non-citizens to get mortgages.

Dealing with Restrictions

Many Russian investors in Dubai had their capital in other countries or cryptocurrencies before the war, as early as Q1 2022. They could easily turn their investments into liquid cash as banking channels were still functioning. Some had already moved their money out of Russia before the war started.

In Dubai, customers don't have to worry about spending a lot to purchase a property. Developers are confident that customers will be able to make payments in the future, so they don't require a large down payment to make a purchase. This is especially true during times of economic prosperity.

Off-plan properties offer a great opportunity for the buyer looking for the perfect home. If the timeline and budget allow, it can be a great way to acquire a property tailored to individual tastes and needs. On the other hand, those who need a place to move into right away should consider buying ready properties. It all comes down to the individual’s preferences and the desired outcome.

In Closing

Dubai's demand for goods and services is at an all-time high, with no need for additional marketing or promotional activities. More personnel must be available to accommodate the ever-growing demand, particularly in the upscale and luxury markets. Expatriates and investors would do well in seeking timely opportunities to acquire real estate in the premium and luxury categories.

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Since 2004, our agency has provided clients with premium and luxury real estate in Dubai for sale and lease through comprehensive management services—administration and paperwork, handover inspection, maintenance and repairs, and tenancy management. Let us help you find the perfect investment by contacting +971 4 423 2006 or messaging on WhatsApp!