Following the Covid-19 outbreak, Dubai has had one of the fastest property booms globally, driven by reforms that are advantageous to investors and a spike in demand from foreign buyers, especially from Russia after Moscow began waging a full-scale war on Ukraine.

Some luxury properties in Dubai are targeted specifically at Russian buyers. Real estate agents are staffed only by Russian-speaking staff, and in certain parts of the Gulf emirates, visitors are more likely to hear Russian than Arabic or English. However, DAMAC chairman Hussain Sajwani says this wave is slowing.

he new surge in demand is coming from China.

“Russia has slowed down. But other countries are also making strong progress, especially with Chinese people coming back,” Sajwani told CNBC’s Dan Murphy on Tuesday at the World Economic Forum in Davos, Switzerland. He also mentioned India and Europe.

“As you know, Dubai is surrounded by more than 100 countries with all kinds of problems and challenges. And people want to come to Dubai to immigrate, live and invest. ” he said.

While China’s economy faces challenges at home, Dubai is benefiting from people who can spend money abroad. Emaar Properties, Dubai’s largest developer, reported last year that Chinese investment accounted for 7% of its total sales in the first half of 2023, almost double the previous year.

The housing crisis, a slowing domestic economy and the lifting of travel restrictions after years of strict lockdown measures have led wealthy Chinese to seek safe havens for their capital overseas. Sajwani said Dubai’s residential rental yields and relaxed tax laws, as well as the United Arab Emirates’ (UAE) refusal to join the Western sanctions campaign, make it an attractive place to do so. He said that.

He also said that Dubai had managed to maintain stability after the start of the Israel-Hamas war on October 7, successfully easing the initial turmoil in the market, and that the regional conflict had affected the emirate’s real estate sector. He added that no damage was caused. “So far, the UAE leadership has pursued very good political policies, has been neutral to some extent and has not been involved in these kinds of issues and wars, and economically as well. , because we are one of the unique countries in the region in terms of lifestyle, security, political stability, very good laws, regulations and, you know, the golden long-term visa.” he said. 10 – Annual foreign visa first introduced in 2019.

“A lot of people come to Dubai and live there anyway.”

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