Foreign investors will keep Dubai’s real estate market booming until 2023 | News Bharat

Dubai: For Dubai and the UAE property market to maintain its momentum in 2022, these foreign investors need to keep buying. The developers believe that a repeat is expected in 2023 and by allocating their considerable resources to new launches, they are not too worried about the up and down cycles of the real estate market.

During this year, a considerable influx of funds into local property was from global investors targeting the UAE’s safe haven status. A place where investments can be secured in a safe operating environment.

The fourth quarter of 2022 offered more insight into this inward flow of funds that this address was looking for, whether in an Emaar project, a Damac villa, an Omniyat penthouse, stylish apartments next to the water of Sobha or a community of MAG. or Azizi What mattered above all else was ‘Brand Dubai’ and Brand UAE.”

And this is the definitive address. In an interview, Gaurav Aidasani, founder and CEO of Union Square House, talks about this pull factor.

How much of it is a fact that Russian and CIS buyers have been active in this market since March? If it is a fact, are these the Russian diaspora that is investing?

Even before the situation with Ukraine, Dubai has always been a favorite destination for Russian investors and tourists. Russians have always flocked to the emirate during the winter to enjoy the weather and beaches.

Since the pandemic began to subside in early 2022, investors and home buyers from Russia and the other 11 CIS countries have increased their purchase of real estate in Dubai. We saw an increase in interest towards the end of the first quarter of 2022, with demand growing around 50 percent compared to the previous year.

With the fall in the value of the ruble earlier this year, Russians realized the importance of tying their wealth to the dollar or assets abroad. This reinforced their preference for Dubai as an ideal investment destination, where they can hedge against currency devaluation and benefit from the continued appreciation of the dollar.

The Palm has always been the first place for Russian buyers – what other places are feeling the increase in demand?

Oceanfront properties have always been attractive to investors. Emaar Beachfront, Bluewaters, Bvlgari Island, Marina and La Mer are some of the areas that Russian buyers are interested in.

Several developers in Dubai have started creating man-made lagoons and beaches in the middle of large villa communities, which have received high demand from Russian investors. In fact, the waterfront living in the middle of the desert is trending among investors of all nationalities.

The preference for ready-made houses? And all this is traded with ready cash?

The demand for ready-made homes has definitely increased. At the same time, for off-plan properties it is also the highest it has been in recent years due to flexible payment plans. Ready homes on the secondary market are transacted for cash, but developer homes are often sold through payment plans, as it is very difficult for non-residents to secure mortgages.

Given the restrictions, don’t these buyers find it difficult to mobilize their money to buy a property?

Many Russian investors in Dubai have had some of their capital in other countries. Others have invested heavily in cryptocurrencies, which can be less liquid than other asset classes. But they could turn it into a smooth cash flow. Moreover, many Russian investors had already transferred money out of Russia at the start of the war, when banking channels were still open.

How should a foreign investor buy property here? Should they opt for ready or off plan?

Both ready and off-plan properties have their respective advantages. It all depends on the client’s needs and whether a buyer is looking for a place to live, use for vacations, rent or resell. Someone looking for immediate returns would be more interested in ready-made properties.

Are Dubai developers launching special promotions aimed at these buyers?

In terms of demand, the Dubai market is currently at its best. Almost no promotions are needed to sell. In fact, there is a shortage of staff, and demand continues to exceed supply, especially in the premium and luxury category.

Are developers demanding a large down payment, due to concerns about defaults and restrictions on transfers?

Dubai is a very well regulated market and there are clear laws that protect both customers and developers. High down payments driven by fear of defaulting on additional payments are not a priority for developers in a luxury environment such as the one we find ourselves in right now. This precaution is more likely to be taken during a market downturn.

Are you starting to see a drop in CIS buyers since October?

We haven’t seen a drop in those buyers this year. What we are witnessing now is an increase in European buyers. According to the latest data, European buyers now represent the number one group of investors in Dubai, followed by Russians.

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