Together with the influx of other foreigners, at the end of the first quarter, the secondary residential real estate market in Dubai showed a 250% increase in the number of sales in annual terms.
However, in April 2022, a new challenge arises before the market - now European buyers and investors, in a huge volume, migrate to the emirate and invest their money in the secondary housing market.
European buyers from the UK, Germany, Italy, France are buying up a wide variety of objects of both the medium price category and the premium segment. The most interesting for them are properties in traditionally popular areas: Palm Jumeirah, Dubai Marina, Dubai Creek and Downtown Dubai.
It is worth noting that it is quite difficult to create a single portrait of a European buyer, since private investors, business owners, ordinary families, and just individual consumers fall into this category.
Among the customer base there is also a business itself, which, for various reasons, relocates its employees to the UAE and is ready to spend from $54,450,000 to purchase housing in Dubai that meets the working needs.
The concentration on the secondary market is largely due to relatively low prices or the presence of a larger number of offers. All this, taken together, this segment of the market showed a threefold increase in the number of transactions for the sale of real estate in the first quarter of this year.
The prevailing demand also led prices to a noticeable «overheating». Over the past two months, prices on the secondary market have already increased by 15%. Many local real estate agencies indicate that the share of clients from Europe in their portfolio has increased by more than 20%.
Citizens of European countries withdraw their funds to other countries in search of a «quiet bay». They are afraid of the consequences of the current geopolitical climate, the onset of the global economic crisis and many other fundamental problems of the modern world economy. They find such a «bay», including in Dubai.
Given that no global improvements in all these problems are predicted, the outflow of wealthy Europeans from the EU and the eurozone to Dubai will only increase.