Ex-pats From the CIS Countries in Dubai: Areas and Types of Property They Choose

The United Arab Emirates and the country’s largest city, Dubai, attract more and more citizens of the CIS countries. Foreigners like to spend holidays in this sunny country and invest in real estate for permanent residence, which is not surprising. The UAE and, in particular, Dubai offers profitable housing options, comfortable conditions and a climate of eternal summer. Regarding where and why foreigners prefer to settle in the emirate, as well as what type of real estate they choose most often and what becomes the key point of choice, Aram Grigoryan, senior consultant at the real estate agency in Dubai, AX CAPITAL, spoke to us.

Content:

• Foreigners in Dubai and the UAE
• Growing demand from ex-pats
• What areas in Dubai do foreigners prefer
• The most popular types of housing among ex-pats
• What foreigners are guided by when choosing real estate
• The most popular emirate
• Residential vs commercial real estate

Foreigners in Dubai and the UAE

According to Aram Grigoryan, more often property in Dubai, in particular, and in the country as a whole, is purchased by couples aged 30 to 60 years, the most active age group being from 35 to 45 years. As a rule, buyers strive to achieve several goals at once, including having a property for rent that they can visit for some time during the year. The most frequent request is the purchase of housing exclusively for rental, and the percentage of those who are going to permanently reside in the United Arab Emirates is no more than 20‒30%.

These indicators have been preserved since the moment citizens of the CIS countries entered the UAE real estate market. However, two or three years ago, affordable and interesting offers appeared in Dubai in comfortable areas, which investors began to look at more frequently.

Growing Demand From Ex-pats

Demand for housing in the UAE from citizens of the CIS countries, Mr. Grigoryan noted, has grown by about 15-20% due to recent events, while real estate delivered by the developer has become more in demand. Housing under construction is also popular, but in this segment, demand has grown by only 10%. It is not yet possible to live in these properties, so for many, it is just a way to save money. Requests for ready-made properties, as a rule, come from those who are already ready to move in, in which case, they are also interested in obtaining a resident visa.

What Areas in Dubai Do Foreigners Prefer?

Traditionally, the most popular areas among immigrants are Dubai Marina and Palm Jumeirah. The expert noted that Business Bay, Downtown and Dubai Hills are also in demand now. He also said that the first question asked by the vast majority of clients is the proximity of the property to the sea. In addition, now many buyers are interested in real estate located on the territory of closed and comfortable communities, for example, Dubai Hills or Damac Hills.

The Most Popular Types of Housing Among Ex-pats

Based on his experience, Aram Grigoryan said that clients from CIS countries are more likely to look for apartments with one or two bedrooms. Studio apartments and apartments with three or more bedrooms are not the most popular request. Many clients want a swimming pool, a gym, and a developed infrastructure to be available. The specialist stressed that closed communities are also in vogue. At the same time, if the real estate is not located on the coast, the citizens of the CIS countries still want to have a reservoir nearby, which is what made the Business Bay area located on the canal bank attractive.

In any case, as the expert noted, the very concept of living in communities, if they are closed and safe, but remote from seaside areas does not suit ex-pats. There is a demand for them among those who are going to move to Dubai and live in the emirate permanently. Then the choice falls on townhouses and villas, as buyers are looking for something more spacious, even if their housing is somewhat removed from the center and coast.

What Foreigners are Guided By When Choosing Real Estate

The main factor that influences the choice of housing in the case of citizens of the CIS countries is its proximity to the sea. According to Mr. Grigoryan, this is often the reason why many people decide to move to the UAE. Demand is also high for property near the Crystal Lagoons, which are reservoirs resembling the sea. Nevertheless, ex-pats have now begun to adjust to the idea of interesting projects that are not located on the coast. There are several reasons for this; firstly, prices in these areas are lower, and secondly, there are almost no offers on the first lines, especially in the category of finished housing from the developer. The same options that appear on the market are expensive.

The Most Popular Emirate

Dubai, the most developed in terms of investment and tourism, traditionally holds The Palm on the list of the most popular emirates among visitors from the states of the former USSR. However, according to the expert, there is a demand for other coastal emirates, where there are several reputable projects at a reasonable cost. Some also prefer Abu Dhabi, but Dubai remains the leader in popularity.

Residential vs Commercial Real Estate

According to Mr. Grigoryan, residential real estate is the most popular among ex-pats. Its ratio compared to commercial real estate in the statistics of transactions is approximately 90% to 100%. Another type of real estate that is in demand is hotel rooms.

Do you want to become a happy owner of real estate in Dubai? Contact us at AX CAPITAL and agency specialists will help you make the right choice.