Pakistanis among top 10 buyers as Dubai property sales skyrocket

Published July 30, 2022
A general view of residential properties at the Balqis Residence on Palm Jumeirah in Dubai, United Arab Emirates on March 25, 2022. — Reuters/File
A general view of residential properties at the Balqis Residence on Palm Jumeirah in Dubai, United Arab Emirates on March 25, 2022. — Reuters/File

DUBAI: Dubai’s red-hot property market surged in the first half of the year as investors piled in, with Russians among the top five buyers as the emirate benefits from an influx of wealth in the wake of Western sanctions.

The first half saw residential real estate transaction volumes up 60 per cent with an 85pc rise in the value of properties sold, property consultancy Betterhomes said in a report.

The top buyers were from India, the United Kingdom, Italy, Russia and France, in that order, followed by Canada, the United Arab Emirates, Pakistan and Egypt tied in eighth place, Lebanon and China.

The number of Russian buyers surged 164ppc in the first half of this year from the first half of 2021, Betterhomes said in response to a query. The numbers for France and Britain rose 42pc and 18pc, respectively, while those from India fell 8pc and Italy dropped 17pc.

Market surges 60pc as investors flock in; India, UK, Italy, Russia, France top five buyers

Demand was boosted by geopolitical instability in Europe and mortgage buyers looking to get in ahead of well-telegraphed interest rate hikes, Betterhomes said.

It was reported earlier this year that Russians were pouring money into Dubai properties, seeking a financial haven in the wake of Western sanctions on Moscow over its invasion of Ukraine.

“The market has faced growing headwinds in the form of rising interest rates and a strengthening dollar but has so far proven to be robust with little sign of slowing,” Betterhomes said.

In the first half of the year, a record 37,762 units were sold, it said, citing Dubai Land Department data, with residential property market transactions totalling nearly 89 billion dirhams ($24.23bn).

Dubai’s property market began recovering from 2020’s severe downturn early last year with buyers snapping up luxury units after the emirate eased pandemic restrictions faster than most cities around the world.

However, S&P Global Ratings said in October that Dubai’s real estate recovery was fragile and uneven, and an oversupply of residential properties would pressure prices in the long run.

Luxury property transactions were up 87pc compared with the first half of last year, with apartments making up 62pc of all transactions, Betterhomes said.

Investors dominated sales, making up 68pc of all buyers, up 10pc compared with a year earlier.

Published in Dawn, July 30th, 2022

Opinion

Editorial

Untruths and politics
Updated 01 Oct, 2022

Untruths and politics

It would arguably be in the national interest for the Supreme Court to take up the cipher and settle the matter.
Farmers’ protest
01 Oct, 2022

Farmers’ protest

SEVERAL hundred farmers have converged on Islamabad for the last three days to protest against the soaring costs of...
Dasht-i-Barchi bombing
01 Oct, 2022

Dasht-i-Barchi bombing

ON Friday morning, Kabul’s Dasht-i-Barchi neighbourhood was rocked by a terrorist attack targeting an educational...
Avenfield relief
Updated 30 Sep, 2022

Avenfield relief

Accountability cannot continue to be treated like a revolving door in which politicians can be shoved in or pulled out on a whim.
Dar’s plans
Updated 30 Sep, 2022

Dar’s plans

For starters, the country doesn’t have spare dollars to burn.
Another targeted attack
30 Sep, 2022

Another targeted attack

WEDNESDAY’S deadly attack on three Chinese-origin individuals in Karachi’s Saddar area demonstrates the threat...