In a significant development, Indians have taken the lead as the largest real estate investors in the Dubai property market, surpassing Britons, as revealed by the Betterhomes Residential Market Report 2023. This shift comes amidst a quarter that witnessed notable transactional growth and changes in property preferences.
Transaction Overview: Robust Growth in Q3
The Dubai real estate market reported 28,249 transactions in the third quarter, reflecting a 4% increase from the preceding quarter and an impressive 23% surge compared to the same period in 2022. This growth was primarily driven by a substantial increase of 34% in villa and townhouse transactions, counterbalanced by a 4% contraction in apartment transactions.
Dynamic Country-wise Rankings: Indians at the Helm
A dynamic pattern emerges as Indians claimed the top position in both the second quarter (Q2) and third quarter (Q3), whereas Britons led the list in the initial quarter. The report attributes this shift to factors such as the rising wealth among Indians and geopolitical developments, particularly Russia’s increased isolation from the top 3 buyer nationalities.
Impact of Geopolitical Factors: Russians Exit Top 3 Buyer List
Highlighting the impact of geopolitical factors, the report notes that Russians moved out of the top 3 buyer nationalities for the first time since Q2 2022. The decline in the ruble played a significant role in this shift. Meanwhile, Indian and British nationals maintained their positions as the two largest buyers of real estate in Dubai.
Golden Visa Influence: Indians and Britons Continue to Drive Demand
Richard Waind, CEO of Betterhomes, emphasizes the influence of the declining ruble on Russian nationals, leading to their exit from the top 3 buyers. However, this decline was effectively offset by the persistent demand from Indian and British nationals. Many of them are leveraging property investment as a strategic pathway to secure the sought-after Golden Visa in the UAE.
Luxury Market Resilience: Record Levels in Q3
The luxury real estate market in Dubai continues to show resilience, with transactions exceeding $4.83 million reaching record levels, marking a substantial 44% increase from the second quarter. Notably, the secondary market played a pivotal role in this growth, witnessing a remarkable 66% surge.
Future Projections: Anticipated Growth in the Luxury Market
Looking ahead, the report anticipates further growth in the luxury real estate market in the UAE. With expectations of attracting 4,500 new millionaires in 2023 and the continuous launch of high-end off-plan projects, including Palm Jebel Ali, the luxury market is poised for expansion in the near future.