The two nationalities will increase their share of the market to 30% of all purchases in 2025, as per Elite Merit Real Estate analytics.
Chinese and Russian Investments Surge in Dubai’s Luxury Real Estate Market
Investments from Chinese and Russian nationals in Dubai’s high-end real estate sector witnessed a significant rise in 2024, increasing by 15% and 20%, respectively. This growth underscores the impact of the BRICS (Brazil, Russia, India, China, and South Africa) alliance, which continues to fuel foreign capital inflows into the emirate.
Insights from UAE-based Elite Merit Real Estates suggest that Chinese and Russian investors are set to dominate Dubai’s luxury property sector, drawn by the city’s investor-friendly tax policies, cutting-edge infrastructure, and stable geopolitical environment.
The BRICS Influence
Market projections indicate that Chinese and Russian investors will expand their footprint in Dubai’s real estate sector by over 30% in 2025. Strengthening economic relationships between the UAE and BRICS nations have facilitated smoother investment processes for buyers from these countries. The UAE’s strategic partnerships with China and Russia, coupled with business-friendly regulations, continue to attract substantial investments.
One of the major factors driving this trend is the UAE’s Golden Visa programme, which grants long-term residency to foreign investors. The initiative has been particularly appealing to Chinese and Russian buyers, offering them security alongside lucrative investment prospects.
China has now emerged as the third-largest foreign investor in Dubai’s real estate market, following the UK and India. Chinese buyers are actively acquiring luxury properties, with purchases surging by 15% in 2024 alone.
Meanwhile, Russian investments recorded a sharp 20% increase in 2024, with rising demand for premium residences in prime locations such as Palm Jumeirah, Downtown Dubai, and Dubai Marina.
Changing Investment Trends
Traditionally, Chinese investors have shown a preference for luxury high-rises, but a notable shift is underway. Many are now diversifying their portfolios to include exclusive waterfront villas and premium properties in prestigious communities like Palm Jumeirah and Emirates Hills.
Conversely, Russian investors are focused on securing high-value assets that promise stable returns in an uncertain global economy. Their interest is increasingly geared towards spacious, income-generating properties with strong rental yields.
According to Elite Merit Real Estate, the ongoing demand surge is driving significant expansion in Dubai’s housing sector. The city is set to add approximately 28,700 new villas by 2025, while long-term forecasts predict a requirement of 37,600 to 87,700 additional residential units by 2040 to accommodate its growing population.
Luxury real estate prices in key areas such as Palm Jumeirah and Emirates Hills have climbed by 10-12% over the past year. Despite this upward trend, Dubai’s property market remains more competitively priced than global hubs like London and New York, reinforcing its status as a premier investment destination.
