By Sarah Townsend
Agency Tranio says Dubai is cheap for Russians compared to New York and London
Dubai has topped a list of the ten most popular cities for prospective Russian real estate buyers, with average price per metre cheaper for Russians than many US and European markets, according to research.
The average price per square metre in Dubai is $4,422, data compiled by Russian real estate agency Tranio show, compared to $19,177 in New York, $26,681 in Los Angeles and $11,167 in Berlin.
There is also a bigger stock of luxury property in Dubai than many other cities, while low taxes and year-round warm weather are other factors that attract Russian investors.
In Tranio’s list, Dubai was followed by New York, then Barcelona, Miami, London, Los Angeles, Prague, Burgas, Paris and Berlin.
Tranio’s real estate research expert, Yulia Kozhevnikov, told Arabian Business: “In research by Tranio, Dubai is one of the cheapest top 10 markets for Russian buyers.
“Understandably so – the unique and luxury lifestyle, year-long swimsuit season, many flights to Russia and the variety of elite property available for [comparatively] ‘low’ prices are strong attraction points.
“The average price per square metre in Dubai is $4,422 [says Tranio’s analysis of figures from Numbeo.com] compared to $19,177 in New York, $26,681 in Los Angeles and $11,167 in Berlin. Not to mention that those other destinations have a smaller stock of luxury property to choose from.”
Russian buyers overseas are attracted to low/non-existent tax regimes, good education, health and transport infrastructure, a variety of property for all budgets and reputable international schools – all of which Dubai has.
They are also to the potential to buy off-plan, and sell when the building is commissioned. “During that time, demand has increased the price of the property and they can earn about 8 percent from the resale,” Tranio noted.
Kozhevnikov added: “[Tranio research] shows that Russians typically spend €340,000 ($384,212) per residential property in Dubai – 80 percent higher than the average budget for property there.
“Buyer activity in the UAE provides a stark contrast with residential habits, as Russian and CIS citizens pay 70 percent less on average for commercial real estate. This is due to lending conditions in Dubai where banks rarely granted to foreign citizens.”
Statistics from the Dubai Land Department last month showed that Russians were the sixth largest group of foreign buyers of UAE real estate last year – excluding Arabian nationals.
Read this story about how London property prices are collapsing !!
You will be hard pushed to find a property in Berlin at 10,000 $ per sqm this is certainly not the average. There is a "Housing Market Report Berlin 2016" available on www.berportfolio.com.