Dubai: Russian investors buy properties worth over US$ 190 million
Akar Real Estsate company that is involved in developing, building, leasing, managing and marketing real estate projects in Dubai announced the opening of an office in Moscow to deal with the increasing number of Russian investors eyeing long term investment opportunities in the emirate.
“In the last one year, over 300 Russian investors have bought both commercial and residential properties in Dubai estimated at over AED 700 million (US$ 191 million),” said Sultan bin Hareb Al Falahi, Chief Executive Officer of Akar. “The potential is considerable and while we do have Russian speaking staff in our Head Office, the purchase of property always follows a great deal of deliberation and it makes sound business sense to have a physical market presence,” he added.
Akar also has marketing offices and representation across Saudi Arabia, Jordan, India, Singapore, the UK, France, Austria and Germany and is involved in the development, design, construction, marketing and management of a network of commercial and residential properties that offer significant value to investors and enhance the economy and landscape of Dubai.
The company offers its marketing expertise to other real estate owners through its overseas network.
Commenting on the increased international interest in UAE’s real estate market, Mr. Sultan remarked: “Investing in real estate in the UAE is considered a safe opportunity that reaps excellent return on investments. With low interest financing available, a stable currency and a booming economy with the country’s GDP projected to grow to a record AED 316 billion (US$ 86 billion) by the end of the year, all of the demographics point towards an increased demand for properties,” he said.
The Russian government’s efforts to advance structural reforms have raised the country’s economic prospects in recent years. The year 2004 marked the sixth consecutive year of growth for the Russian economy, which averaged 6.5% annually since the economic crisis of 1998.
The real estate market in the UAE is booming. Fuelled largely by a desire for sharper returns than properties in international markets. Investors are using their investments to leverage even larger properties, which stir up demand.
The property market in the UAE is growing with a mix of local, regional and international investors: individuals, funds, companies and real estate investment trusts. All of these have created an exceptionally aggressive market that is approaching record prices.
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