As Dubai continues to solidify its position as a global investment hub, the BRICS Factor - the expanding economic collaboration among Brazil, Russia, India, China, and South Africa - has become a key driver of foreign capital inflows, according to UAE-based Elite Merit Real Estate.

 

The Chinese and Russian investors, in particular, are poised to dominate Dubai’s luxury property market, capitalizing on the city’s favorable tax policies, world-class infrastructure, and geopolitical stability, stated the real estate group in its report.

 

Recent data indicates that Chinese and Russian investors are set to increase their share of Dubai's real estate market by over 30% in 2025. 

 

In particular, Chinese nationals have been actively targeting high-end properties, with a 15% increase in purchases in 2024 alone, making China the third-largest source of foreign investment in Dubai after the UK and India, said the report.

 

Meanwhile, Russian investors have been actively seeking opportunities, with investment from the country surging by 20% in 2024 as demand for luxury homes in areas such as Palm Jumeirah, Downtown Dubai, and Dubai Marina continues to rise, it added.

 

Elite Merit Real Estate pointed out that Chinese investors, traditionally known for focusing on luxury high-rises, have diversified their interest to include premium villas and waterfront properties, particularly in exclusive communities like the Palm Jumeirah and Emirates Hills. 

 

In contrast, Russian investors are increasingly purchasing larger, high-yielding properties, particularly those offering rental potential, as they look to secure stable returns amidst global uncertainties, it stated.

 

With demand soaring, Dubai is set to complete nearly 28,700 new villas by 2025, while long-term projections indicate the need for 37,600 to 87,700 additional housing units by 2040 to accommodate its expanding population, said Elite Merit Real Estate in its report.

 

Prime locations such as Palm Jumeirah and Emirates Hills have already seen price increases of 10-12% in the past year. Despite these rises, Dubai remains competitively priced compared to global cities like London and New York, it added.-TradeArabia News Service