There has been a rising number of Chinese investors in the Dubai property market.
End of January, Dubai Land Department (DLD) announced that it will increase promotional activity in China this year, with the goal of attracting at least AED 1 billion of inward investments this year.
In the first nine months of 2018, Dubai recorded AED 162 billion worth of real estate transactions, according to DLD. Additionally, Chinese investors accounted for AED 1.7 billion of the total in Dubai’s real estate sector during the first three quarters of 2018.
According to Dubai Tourism, Chinese visitors climbed to the fourth spot, welcoming 857,000 visitors with 12 % year-on-year growth.
On that note, the number of Chinese expats has increased 53% in the last five years. There are a total of 30,000 Chinese nationals currently living in the emirate and around 4,000 Chinese companies here.
Firas Al Msaddi, CEO of fäm Properties predicted that Chinese investors will dominate almost half of its sales in 2019.
“Immediately we’ve set our sights on achieving higher targets this year, and I’m forecasting that 50% of our sales and above will come from the Chinese market,” Al Msaddi told Arabian Business.
“There is huge potential for Dubai real estate in the Chinese market and we’re adopting a strategic approach to give fäm a strong presence there and ensure we’re able to tap into it,” he added during the interview.
A driver behind the rapid growth in investment by Chinese nationals is following the visit of Chinese President Xi Jinping to the UAE in July 2018. Ties between the two countries became even stronger, particularly from a tourism, trade, culture and investment perspective. Therefore, Dubai has become a second home for Chinese nationals.
In a bid to promote Dubai as an investment destination, Emaar Properties announced that it has begun business development operations in China last month and the design and fit-out of two offices in Beijing and Shanghai.
The two showrooms will also promote its projects including its 6sqkm Dubai Creek Harbour development, which is planned to feature the largest Chinatown in the Middle East. The move is a great initiative and leads to strengthen trust of Chinese investors in Dubai.
With an interest in ready and off-plan properties, what attracts Chinese investors to the Dubai real estate market when making purchasing decisions are three key factors: location, annual yield and selling prices.
In terms of property, the three most popular areas to buy ready properties for Chinese investors are Downtown Dubai, Greens and International City.
While buy off-plan properties, Dubai Creek Harbour, Meydan and Madinat Jumeirah Living are the top three areas for Chinese investors.