Investors are always on the lookout for promising real estate opportunities, whether for personal use, business purposes, or to generate rental yields and passive income. Finding the right opportunity in the right location is key to achieving one’s goals.

Two of the most sought-after locations for property investments are Dubai and Moscow. Known as business hubs, economic centres, and rich cultural sites, they are home to stable and flourishing real estate markets. Continue reading this article for an in-depth comparison of Moscow’s vs. Dubai’s real estate growth, investment potential, and more.

2024 Market Trends in Moscow vs. Dubai

Market trends refer to the fluctuations in property supply, demand, and prices in a particular location over a period of time. Additionally, they encompass other relevant changes and factors such as economic indicators, demographic trends, financing conditions, and consumer behaviour. As a result, market trends give in-depth insights into the current and future state of the real estate market in a given city. In other words, they show potential real estate growth.

So, what are some significant market trends in Moscow vs. Dubai in the year 2024?

● Moscow’s Market Trends and Growth in 2024

Russia’s property market is expected to grow in the upcoming years, with its worth reaching $356.7 million by 2030, supported by an average annual growth rate of 7.4% starting from 2024 to 2030. Zooming into Moscow for the year 2024, various segments of its real estate market are expected to witness stability and growth.

For example, the luxury property market is projected to grow in 2024 without overheating, meaning that it will grow at a healthy and sustainable pace. It will witness price growth at low rates, resulting in satisfactory demand and maintenance of favourable conditions for buyers, granting them negotiation power.

Major growth potential is at play in Moscow’s suburban real estate market in 2024, resulting from rising rates of domestic tourism. That said, prices in this segment will also rise by 5–10%, varying from one location to another. However, demand will remain stable and is expected to increase by 7-8% by the end of the current year.

● Dubai’s Market Trends and Growth in 2024

Dubai’s property market is expected to grow by 15%, meaning that the overall property value and the market’s activity will increase by the same percentage. This trend aligns with Dubai’s thriving economy and the government’s efforts at economic diversification, especially in the fields of tourism and technology. Such growth will deliver the property supply needed for the anticipated population growth in Dubai, which is expected to reach 5.5 million by 2030.

Regarding property prices, they are expected to rise by 3% in 2024 as a result of the growing population and increased international investments. However, Dubai’s property prices remain among the most affordable internationally.

Rents in Dubai will also rise by 3% in 2024, making it an ideal destination for investors aiming to get a high rental income. It is worth mentioning that Dubai’s market is expected to experience a price correction by the end of 2024, meaning that prices will start easing by 5–10% while still not negatively impacting growth.

Moscow vs. Dubai Real Estate Financing

Mortgages are a common way to finance real estate, no matter the investment’s destination. That said, mortgages in Dubai are unique for their favourable conditions and low interest rates, allowing for better financial flexibility. Not only that, but interest rates are expected to drop by 1%, encouraging more investments.

Mortgages are also available in Moscow. However, the state’s preferential mortgage programme, which has been implemented since 2020, is currently ending. The programme had resulted in a 96% rise in property prices and tightened bank requirements in the past few years, and its ending brings about conflicting expectations regarding Moscow’s real estate market.

Some experts see that housing prices will stabilise and become more affordable, while others believe that property will become unaffordable due to high construction costs and financing rates. Therefore, it is important to explore what types of mortgages can support your purchase in Moscow and keep up closely with the current and upcoming changes for better insights.

Dubai’s Off-Plan Property Investments

Off-plan properties refer to properties still under construction, and they are sometimes preferred over finished developments for a variety of reasons, mainly for being more affordable than finished projects and for offering flexible payment plans.

The payment plans for buying off-plan properties in Dubai consist of two stages. The first is paid during construction while the other is upon handover, and some of these plans include the 80-20, 60-40, and 50-50.

For example, an investor opting for the first payment plan would have to pay 80% of the property’s price during construction and the remaining at the handover. While mortgages are a common way of financing a real estate purchase, mortgages in Dubai for off-plan properties cover only 50% of the total property price.

Whether you are looking for off-plan properties or ready-to-move properties in Dubai, Azizi Developments offers you a wide variety of residential and commercial properties suitable for all types of investment purposes. If you are searching for your forever home, Azizi offers you many units alongside world-class amenities in highly advantageous locations. Discover