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Wealthy Russians looking for new investments away from the deteriorating rouble could boost demand for Dubai’s real estate, which is already seeing positive momentum in 2022.
Dubai has been attractive for those from emerging markets where currencies are experiencing volatility. According to an S&P Global Credit Outlook webinar on Thursday, this is particularly true for Russians, who have seen the rouble fall to record lows in recent weeks in addition to extensive sanctions after the country invaded neighbouring Ukraine in February.
Tatjana Lescova, associate director, S&P Global, said: “Dubai remains a very welcoming place for Russian citizens, for high-net worth individuals, they don’t apply sanctions, it’s a very safe and attractive alternative so we think that could boost the demand.
“We see the Russian rouble deteriorating very quickly. Dubai is even more attractive because the dirham is pegged to the dollar and it provides a hedge to volatility. We see more positive momentum from that,” she said.
The residential property market in Dubai will continue to see positive momentum this year, following a strong demand in 2021, with residential transaction numbers up by 60 percent from 2020 to 2021, said Lescova.
30,000 new units expected
Property prices, which are still 25-30 percent below their 2014 peak will remain relatively affordable, according to S&P Global.
“Developers will continue to make new launches, with 30,000 new units expected to be delivered in 2022, translating to more moderate price increases as more new properties are released on to the market,” Lescova said.
(Reporting by Imogen Lillywhite; editing by Seban Scaria
