Russians eye London-Dubai property swap deals
Rich Russians are trying to swap their luxurious properties in London for multi-million pound properties in Dubai as they seek innovative methods to avoid monetary restrictions imposed due to president Vladimir Putin’s invasion of Ukraine.
A property listing for a Knightsbridge mansion priced £34mn and a three-bed Eaton Square house with a £8mn asking value has been circulated in latest weeks by high-end actual property brokers working within the Gulf emirate.
They’re being supplied by Russians who are keen to barter their London properties for a brand new residence in Dubai, whereas avoiding financial institution transfers and monetary scrutiny, according to individuals concerned within the transactions.
Potential buyers are being given discounted offers on the UK properties to complete the deal quick. The preference is for buyers who could trade their Dubai properties.
About 1,000 people and companies have been hit with the sanctions, with others dealing with further checks in addition to difficulties navigating cash transfers and opening bank accounts.
However, there have been doubts in Dubai over how a deal can be structured, and whether or not any residents would risk such an exchange.
“I’m very sceptical that this will work, there’s simply an excessive amount of documentation to be done in London,” stated one businessman in Dubai who was approached on the listing by a property agent. “Nevertheless it goes to indicate the lengths they’re keen to go to evade the monetary system.”
One Dubai-based lawyer stated difficulties would come up as a result of the different types of paperwork involved as well as difference in real estate prices in each jurisdictions.
Dubai has turned into a favoured haven for Russians, and their typically enormous wealth, fleeing the west since hostilities broke out. The UAE has remained impartial on the battle, guaranteeing that the Gulf state stays open for enterprise for Russians and Ukrainians fleeing the warfare and its repercussions. Some UAE banks – RAK Bank is one – offer loans to buy property in UK.
A law agency in Dubai has even arranged a dedicated desk for the Russian customers. Ironically, the Russians and Ukrainians share common spaces in muted harmony while in the emirate in unforced conditions. On the occasion of Easter, both citizens came under one roof in a church in Sharjah.
The exodus has also resulted in even average citizens from both countries, including refugee Ukrainians, to look for apartments on the rental market.
Abdullah Alajaji, founder of the Dubai-based Pushed Properties, said his agency had recorded sharply larger transaction values this year, primarily in ultra-high-end and waterfront properties.
“We’re seeing a particular enhance in exercise in transaction values and volumes over the previous few months, and that’s partly on account of Russian patrons,” he stated.
Meanwhile, an apartment at the Bulgari Resort and Residences in Dubai has set a new record for the highest price per square foot in the city.
The three-bedroom property on Jumeirah Bay Island sold for Dh40 million ($10.9m) – which equates to Dh12,624 per square foot – against the backdrop of a surging real estate market, according to figures from Dubai Land Department’s database. The identity of the owner is not yet known.