While Indians, Pakistanis and British nationals may top the list of Dubai real estate investors, interest in property investment in the city is soaring amongst potential buyers from China.
According to the popular Chinese property portal Juwai.com, which specialises in overseas property searches for Chinese nationals, investor’s interest in Dubai real estate rose by 1,200 percent year-on-year in August 2015.
So, why has China, one of the UAE’s largest trading partners, grown to become deeply interested in Dubai property investment?
Firstly, there has been a rise in affluence amongst Chinese investors, encouraging them to make smart investments worldwide.
Secondly, the Chinese real estate market has undergone significant transformation in the past few years and has been characterised by low rental yields, stock market downturn, low interest rate, high prices and poor capital gains. Faced with this scenario, Chinese investors are globalising their property portfolios and have found the UAE’s, especially the Dubai real estate sector, a lucrative investment option.
Moreover, Chinese buyers generally tend to purchase for investment or for part-time occupancy and what they really appreciate are high quality luxury residential units, ready-to-move-in villas, strong rental yields, capital appreciation, facilities and new construction; aspects that Dubai has in abundance.
Chinese nationals were the seventh biggest investors in Dubai real estate last year, investing around $460 million. As per recent market reports, Chinese investment in overseas property grew dramatically in the first half of 2015 by 46 percent year-on-year to $6.6 billion. This growth has been attributed to the recent yuan devaluation, the fall in equities and the outlook of investors that look at not just established markets such as London and New York, but diversify their assets by focusing on other cities that can offer better returns on real estate.
With more Chinese citizens investing in the Middle East and diversifying away from their home country’s softening real estate sector, the UAE’s developers are tapping in China, keen to display the Emirate’s impressive potential to this huge Asian market. Through property shows and exhibitions, realtors are reaching out to one of the UAE’s biggest realty customer bases by creating brand awareness through word of mouth, building their credibility and fortifying relationships with existing customers.