With mortgage rates in Russia skyrocketing to 18% and the discontinuation of the 8% preferential mortgage rate, Russian investors are flocking to Dubai’s booming real estate market. Property prices in Moscow have surged, pushing buyers to explore more attractive options abroad. Olga Poletskaya, head of investment at Colife Invest, notes, “Russian buyers are increasingly choosing Dubai over Moscow due to soaring mortgage rates and rising property costs at home.”

For investors in Moscow, the cost of a primary housing unit has doubled over the past four years, and the high mortgage rates have made it nearly impossible to earn sufficient rental returns to cover payments. "An investor now needs a return of at least 18%, which is unrealistic in the current market," Poletskaya explained. This has resulted in a sharp drop in demand for Moscow properties, with some estimates suggesting a 42% decline since July.

French Investors Seek Dubai’s Shorter Payback Period

In addition to Russian buyers, French investors are increasingly attracted to Dubai’s real estate market, lured by its shorter payback period and the absence of high taxes. The payback period for property investments in Dubai is half that of Paris, making it an appealing option for French buyers looking to maximize returns.

Sought-after areas such as Dubai Marina, JLT, Business Bay, and Dubai Hills are becoming popular among these international investors. Dubai’s advanced infrastructure, easy accessibility, and high demand from tenants make these neighborhoods prime locations for investment. As Dubai continues to offer better investment conditions compared to Paris or Moscow, its real estate market is drawing a growing number of international buyers looking for prestige, safety, and high returns.

Read More: Dubai Design Week Returns this November