Mira Estate's team have reason to be happy.
In the first half of the year, sales to buyers from Russia and other former Soviet states increased by 100%.
Property sales to these nationals for the firm, which specializes in Russian-speaking clients, doubled year on year to 2 billion dirhams, or $500 million.
Russian real estate agents popped bottles of champagne to celebrate making record commissions on sales to fellow citizens buying their first homes in the desert Oasis. A saleswoman made 4 million dirhams in commission in three months, according to her colleague, who spoke to CNBC anonymous.
Roman Abramovich, the former owner of a football club and an associate of the Russian president, is looking for a home in the palm tree-shaped archipelago of artificial islands in the Middle East, according to reports. After the U.S. Justice Department authorized its seizure, the tycoon's private jet has been grounded in the emirate.
Billionaire oligarch Roman Abramovich, former owner of Chelsea football club and longtime associate of Russian President Vladimir Putin, is reportedly house-hunting on Dubai’s Palm Jumeirah, the iconic man-made archipelago of artificial islands designed to look like a palm tree.The influx of buyers from Russia, as well as from the Commonwealth of Independent States (CIS), a group of nine former Soviet countries spanned Eastern Europe, the Caucasus and Central Asia, has pumped up the United Arab Emirate's property sector.
Many people lost their multimillion dollar properties in cities like London and Paris as a result of sanctions and asset seizures imposed on wealthy Russians and people associated with Putin.
Wealthy investors from the Commonwealth of Independent States have fled their countries due to the war in Ukraine and the impact of sanctions on Russian-speaking individuals and their establishments.
There has been a surge in demand for real estate due to the influx of billionaires and entrepreneurs from the Commonwealth of Independent States. Ready units and waterfront properties are what most buyers are looking for.
The swimming pool of a luxury villa for sale on Dubai’s Palm Jumeirah, on May 19, 2021.In the first two months of this year, sales of real estate in the city have increased by 45% and 51%, respectively.
After a steep dive at the start of the Pandemic, the commercial hub of the U.S. saw a steady recovery after it adopted a more relaxed approach to the disease. The U.S. opened up new visa opportunities for long-term residents and remote workers, signed a historic deal with Israel, and switched from its Islamic Friday- Saturday weekend to the Sunday one.
The decision to stay neutral as much of the wealthy world shut its doors to Russians following Putin's brutal invasion of its neighbor in late February has paid off particularly well for the U.S., whose tax haven status and reputation for financial secrecy make it highly attractive to many.
Russians moved up two places to become the fifth-top buyer of properties in the first quarter of the year, according to a ranking by Betterhomes. According to a report released in June by London-based citizenship-by-investment firm, the U.S. will be the top destination for ultra-wealthy people this year.
According to the firm, Russia is going to lose 15000 millionaires.
According to the report, dirhams are becoming a must-have asset for high net worth investors.
Misha Glenny, journalist and author of the book “McMafia,” wrote in a post for Henley & Partners: “The UAE has experienced soaring rates of high-net-worth migration, primarily into Abu Dhabi and Dubai.”The author of the book "McMafia" wrote in a post that high-net-worth migration has increased in the United Arab Emirates.
Glenny said that Russians who want to escape the impact of Western sanctions have begun to move to the United Arab Emirates and Israel.
Those who work in the business say that there is a clear trend as to what kind of properties Russian buyers prefer.
Prime Capital's managing partner told CNBC that most of their luxury properties are around the sea. The upscale Emaar Beachfront and La Mer properties are on the city's coast.
Their first preference is anything near the water.
Residential villas on the waterside of the Palm Jumeirah in Dubai on Feb. 24, 2022. Russians were always among the top 10 nationalities investing in Dubai property, according to Tahir Majithia, managing partner at Dubai-based Prime Capital real estate.Majithia said that buyers seek a mix of properties to hold and rent as investments and also for personal use. A block deal is when a buyer buys a whole floor. The average price for one floor of a luxury apartment building is between $7 million and $10 million.
Russians were always among the top investors. He noted that some of the buyers were liquidating their assets in other countries and moving their funds to the US.
He said that many Russian buyers make their purchases in the virtual currency.
Lawmakers and anti-corruption activists accuse the city of being a hub for corrupt money. A group of members of the European Parliament in May accused the United Arab Emirates of facilitating money-laundering at a grand scale, calling on it to sanction Russians who have moved there.
The officials at the country's Foreign Ministry did not reply to the request.
The Gulf country was placed on the Financial Action Task Force's "gray list" due to its "strategic deficiencies" in stemming illegal financial activity.
In response, the Emirati body tasked with counteracting illegal financial activities said that it takes its role in protecting the integrity of the global financial system very seriously and will work closely with the FATF to remedy the areas of improvement identified.
The country steps up its reforms in an effort to meet international standards.
Its economy is growing fast.
In an interview with CNBC in March, Hussain Sajwani said that he was sure that a lot of Russians were trying to fix their problems.
A lot of people were nervous because of the sanctions. We will do business with people who bring money through the banking system.
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