Russians have helped make Dubai’s property market red hot—again

Russians have helped make Dubai’s property market red hot—again

Too much good news can be a bad thing. Dubai, the commercial capital of the United Arab Emirates (UAE), has had lots of the former in the past two years. Lax restrictions during the pandemic lured expats. Russia’s invasion of Ukraine brought another influx of new residents.

High oil prices have added to the boom-time feeling. Restaurants and bars are heaving. Rush-hour traffic is back to pre-pandemic levels. Public transport moved a record number of passengers in February.

For some residents, though, the good news is grating. Annual inflation hit a 14-year high of 7.1% last summer, partly due to soaring petrol prices (unlike other Gulf states, the UAE does not subsidise fuel). It has since dropped to less than 5%, below many other rich economies. But the headline number does not tell the full story.