British expats are gradually leaving Dubai as real estate is being bought up by wealthy Russians after Russia's invasion of Ukraine. The Telegraph writes about it, UNN reports .
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According to a group of economists from the EU Tax Observatory and the Norwegian Tax Research Center, since 2022, Russian citizens have bought $6.3 billion worth of existing and under-construction real estate in Dubai.
Last month, real estate company Knight Frank reported that prices in Dubai have increased by 124% since 2020. And rising prices are forcing British expats to look for other housing options or leave the country.
Mona Jalota, founder of Krypton Global Real Estate, said she has received a lot of inquiries from British expats interested in moving from Dubai to another city for cheaper rent and shopping. “Whenever there is a global or political crisis, Dubai remains a safe place to invest, so the constant demand makes prices rise,” she explained.
Russians often buy housing for cash, which encourages landlords to also insist on selling only through “hard cash.” “The majority of the Russian market is buying in areas with really high rents, so that's why prices have gone up so much,” said Shruti Krishnan of White Window Real Estate.
This has resulted in the cost of buying a home for cash being significantly lower compared to prices for those taking out a mortgage: a cash sale of one million UAE dirhams is now equivalent to a sale of 1.25 million UAE dirhams to a mortgage customer.