Real Estate

Russian and French Investors Flock to Dubai Real Estate Amid Mortgage Rate Surge

It is now common to see Russian and French buyers investing in Dubai real estate market due to high mortgage rate in Russia thereby making property investment domestically a herculean task. The recent cancellation of the 8% preferential mortgage rate in Russia moreover the hike in housing interest rates by 18% is forcing the Russian buyers to look for better options abroad and the most preferred location being Dubai.

Olga Poletskaya, the head of investment at Colife Invest noted that Russian investors are focusing their attention to Dubai since housing is becoming too expensive in their home market, which has seen property prices double in the last four years. This means, the rates of mortgages available to property owners in Russia are high, meaning that the only feasible way to rent out properties is at a rate that would be enough to pay for the mortgage. Therefore, Russian buyers are now turning to Dubai wherein the returns on investments in real estate are high, the place being safe and prestigious.

French investors, who are also interested in Dubai’s competitive and profitable real estate sector, are particularly investing in exclusive residential districts. The absence of taxes and a significantly more rapid ROI compared with Paris have made Dubai most attractive.” Mr. Alam said that due to high taxes and long payback periods in France, many wealthy customers are shifting to the UAE, where the properties at areas such as Dubai Marina, JLT, and Downtown are much in demand.

These locations have good connectivity, proximity to major cities, and have high absorption by tenants; hence more economically appealing to investors. Therefore, as Dubai targets more international property buyers, it solidifies its position as one of the leading international real estate markets.

 

 

Victoria Dickinson

Victoria Dickinson is a seasoned journalist at Dubai.News, specializing in real estate and business news. With over a decade of experience in the industry, Victoria has a keen eye for market trends and an in-depth understanding of the economic factors influencing the real estate sector. Based in Dubai, she provides insightful analysis and comprehensive coverage of the region's dynamic property market, from luxury developments to emerging business hubs. Victoria's background in economics and finance, coupled with her passion for storytelling, allows her to deliver news that is both informative and engaging. Her articles not only inform but also help readers make well-informed decisions in the competitive real estate landscape. Outside of her professional work, Victoria enjoys exploring Dubai’s diverse neighborhoods and attending industry events to stay ahead of the latest developments.

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