Interest in Dubai property is picking up once again among Russian buyers despite the fact that the rouble’s worth remains almost half of what it was two years ago.According to real estate portal Propertytrader.ae, there has been a “definite increase” in visits from Russians to its site since the start of this year, when oil prices were in the doldrums and the rouble came under severe pressure. Prior to Russia’s conflict with Ukraine, which began in early 2014 and eventually led to the imposition of economic sanctions by the United States and the European Union, exchange rates stood at about 35 roubles to the dollar, compared with almost 67 roubles per dollar by 4pm on Wednesday. However, this was a considerable improvement on January this year, when oil prices slumped below US$30 per barrel and the exchange rate fell to almost 79 roubles to the dollar. The UAE dirham is pegged to the dollar, and Propertytrader.ae said interest from Russia has increased almost three-fold since January as the rouble gained in value.”As we looked at the statistics for the first six months of 2016, we noticed a definite increase in visitors from Russia looking at homes for sale in Dubai,” said Umer Ali, the sales director of PropertyTrader.ae. “As an illustration, in January 2016 hits from Russia made up just 6 per cent of our overall traffic, yet in July it was up at 17 per cent. This is a significant upward trend.”Mr Ali said that Propertytrader.ae’s findings tied in with results published by Tranio – a Russian online property broker specialising in international sales – earlier this year, which placed Dubai as the most popular international city for prospective buyers. Tranio had said that Dubai was popular because property is still relatively inexpensive when compared to some of its markets. According to the Global Property Guide, Moscow is the sixth-most expensive property market in the world – behind Monaco, London, Hong Kong, New York and Paris. Average property prices stand at more than US$16,000 per square metre in the city, compared with just over $5,000 per square metre in Dubai.According to Dubai Land Department figures, Russians were the 11th biggest group of property buyers in Dubai last year, spending a total of Dh2.75bn. However, the currency weakness experienced earlier this year meant that in the six months to June 30, they slumped to 17th, spending Dh727m.mfahy@thenational.aeFollow The National’s Business section on Twitter
Source : thenational.ae
Read more…Russian interest in Dubai property picking up amid slow rouble recovery
