Russian cash threatens to price British expats out of Dubai

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Russian cash threatens to price British expats out of Dubai

Russian money has flooded into the Dubai property market since the Ukraine invasion – Stefan Tomic/E+

British expats are being priced out of Dubai as property is snapped up by wealthy Russians following the Ukraine invasion.

Since 2022, Russian nationals have bought up $6.3 billion (£4.8 billion) in existing and in-development 

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, according to a group of economists with the EU Tax Observatory and Norway’s Centre for Tax Research.

Last month, property firm Knight Frank revealed prices in Dubai have risen 124 per cent since 2020.

And the rise in prices is forcing British expatriates to look elsewhere, according to a real estate expert in the kingdom.

Many of those making the move commute to work in Dubai, which is between an hour and 90 minutes drive away from Ras Al Khaimah.

***** Jalota, founder of Krypton Global Real Estate, said she had received an uptick in enquiries from British expatriates enquiring about a move out of the city for cheaper rents and purchases.

“Every time there is a global or political crisis, Dubai continues to be a safe place to invest in, hence the continuous demand keeps the prices being pushed up,” she said.

Shruti Krishnan, from White Window Real Estate said cash purchases from Russians are swaying landlords to push for cash-only sales too.

“Most of the Russian market is purchasing and in areas that give them really high rental so because of that the prices have gone up a lot,” she said, such as 

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, Downtown Dubai and Creek Harbour, where short term rentals are highly profitable.

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“They’re doing cash purchases so what happens is, they will buy the property in cash and when that happens the ***** is faster and the sellers are happy, so you see different sellers asking for cash-only sales, especially rising since the war.”

It has led to a two-tier pricing with cash prices versus prices for those on mortgages: a cash ***** of one million Emirati Dirham (AED) is now the equivalent of an AED1.25m  ***** to a mortgage client.

The rising rents have also pushed many in Dubai to buy, as prices become equivalent to mortgages, said Ms Krishnan, a one-bedroom apartment last year AED35,000 a year, now AED50,000 a year in Dubai South, on the far edge of Dubai.

The price rise has come at a time when there has been a significant spike in interest from British nationals looking to move to the UAE from the ***.

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Earlier this year, John Mason International Movers reported a 50 per cent increase in enquiries this year from people looking to leave the ***.

Steve Johnston is one of the Brits who have recently left Dubai, where he has lived for 27 years. Originally from the Wirral, he is now paying 40 per cent less in rent than in Dubai after moving to the northernmost emirate in the ******* ***** Emirates, Ras Al Khaimah.

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The radio presenter was paying around AED4,000 (£830) a month for a studio apartment while now, pays just AED2,300

(£480) including free air conditioning, internet, and electricity, in a brand new building.

“I can see a lot more people moving out of Dubai,” he said.

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Jennifer Webster is also making a similar move.

She said: “I’ve been served my second eviction notice in three years as landlords look to capitalise on higher rental rates for villas and I simply cannot afford to pay the moving costs then find another villa for myself, my husband and our two rescue dogs, when prices are so inflated.”

She has gradually moved further and further out of the city. “Even with that, costs are far too high and we are living hand to mouth off our salaries every month which negates the point of moving here in the first place,” she explained.

The report from the EU Tax Observatory said the team found evidence of a “substantial *****” in Russian interest following the outbreak of the war.

“We estimate that Russians bought $2.4 billion worth of existing residential real estate during the two years following the invasion, and a further $3.9 billion of off-plan properties. This is roughly a 940 per cent and 1,500 per cent increase on the previous two years.”

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