Chinese and Russian nationals’ investments in Dubai’s luxury real estate market increased by 15 and 20 per cent in 2024, respectively, highlighting the BRICS (Brazil, Russia, India, China, and South Africa) Factor that is driving the growth of foreign capital inflows into the emirate.
Analytics from the UAE-based Elite Merit Real Estates revealed that Chinese and Russian investors are poised to dominate Dubai’s luxury property market, lured by the city’s favourable tax policies, world-class infrastructure, and geopolitical stability.
The BRICS Factor
Recent data shows that Chinese and Russian investors will increase their market share by over 30 per cent in 2025.
The growing economic ties between the UAE and BRICS countries have made it easier for investors from these nations to navigate the Dubai market. The UAE’s economic ties with China and Russia, coupled with favourable regulatory conditions, are encouraging more investments.
The UAE Golden Visa programme, which offers long-term residency to foreign investors, has been highly attractive to Chinese and Russian nationals, is a key driver. It offers them both investment opportunities and stability.
China has become the third-largest source of foreign investment in Dubai’s real estate market after the UK and India. Chinese nationals actively target high-end properties, and purchases increased by 15 per cent in 2024 alone.
Investment from Russia surged by 20 per cent in 2024 as demand for luxury homes in areas such as Palm Jumeirah, Downtown Dubai, and Dubai Marina continues to rise.
A noticeable trend among the Chinese investors, traditionally known for focusing on luxury high-rises, is that they have diversified their interest to include premium villas and waterfront properties, particularly in exclusive communities like the Palm Jumeirah and Emirates Hills.
Russian investors, on the other hand, are looking to secure stable returns amidst global uncertainties. They are increasingly purchasing larger, high-yielding properties that offer rental potential.
Elite Merit Real Estate added that with demand soaring, Dubai is set to complete nearly 28,700 new villas by 2025, while long-term projections indicate the need for 37,600 to 87,700 additional housing units by 2040 to accommodate its expanding population.
Prime locations such as Palm Jumeirah and Emirates Hills have already seen price increases of 10-12 per cent in the past year. Despite these rises, Dubai remains competitively priced compared to global cities like London and New York.
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