Russian, British citizens top buyers of nonresidential property in Dubai

Dubai’s booming real estate market is being abetted by the war in Ukraine. 

The Emirati real estate broker Betterhomes released a report Tuesday on Dubai’s real estate market in the third quarter of 2022. Russian citizens were the nationality with the most nonresidential real estate purchases in the quarter, followed by Brits, according to the report.

Betterhomes’ managing director told Reuters that the war with Ukraine and Russia’s military draft are driving Russians to purchase property in Dubai. 

On British citizens buying homes in Dubai, Betterhomes said people from there “see the value of buying real estate in Dubai and the various benefits it undoubtedly offers such as safety, sunshine and endless opportunities.”

India, Germany and France rounded out the top five nationalities. The United Arab Emirates is a top tourist destination for Indians, and the two countries signed a trade agreement earlier this year. 

Lebanese citizens were eighth on the list. Lebanon is contending with a devastating economic crisis at the moment, which has prompted elites and poorer people alike to flee. 

Why it matters: Dubai’s real estate market is booming this year. Real estate transactions in the UAE’s largest city from January to May this year constituted a 13-year high. 

Betterhomes determined that sales of apartment units increased 76% while townhouses increased 55% in the third quarter of this year, compared to the same period in 2021. The sale of villa units declined 5%, on the other hand, per the report. 

Know more: A significant number of Russians have liquidated cash via UAE-based cryptocurrency exchanges this year in response to Western sanctions related to the war in Ukraine. Read Sebastian Castelier’s memo for Al-Monitor PRO on the subject to learn more.