The Palm Jumeirah in Dubai. - Photo: AFP
DUBAI: Developers in Dubai are ramping up their efforts to sell properties to wealthy Chinese, seeing “huge potential” behind growing demand from buyers who are lured by a golden visa programme, attractive rental yields and promising economic prospects.
For Li Fanwu, a 36-year-old Chinese former property professional, the trend became clear earlier this year when he worked for an immigration advisory firm. Recognising the growing number of Chinese nationals relocating to Dubai, he joined Danube Properties – one of Dubai’s top 10 developers – as a Beijing-based salesman.
“China is a ‘blue ocean’ market with the largest growth potential for Dubai’s developers,” Li said. “Our firm and our peers are doubling down on expanding our sales teams to cater to Chinese buyers.” He added that Chinese people make up the eighth-largest group of buyers in Dubai’s real estate market.
Before the Covid-19 pandemic, China was a major source of tourism for the United Arab Emirates (UAE) city, but its nationals were also key players in the pool of homebuyers, according to Faisal Durrani, partner and head of research for the Middle East and North Africa at Knight Frank.
“Chinese buyers are making a return,” he said, adding that both buy-to-let investors and high-net-worth individuals are making Dubai their main place of residence and primary business base.
This reinforced Dubai’s status as the world’s biggest market for sales of homes priced at US$10 million or above in the third quarter this year, a title it has held for almost two years, Durrani said.
For wealthy Chinese investors, this presents a unique opportunity to diversify their investments and secure their assets in more stable markets abroad.
Among the top destinations, the United Arab Emirates (UAE) stands out as a prime location for real estate investment. In this blog, we will explore why the UAE, along with other destinations like Australia and the United States, is an attractive option for Chinese investors looking to safeguard their wealth.
The recent drop in Chinese home prices marks a significant shift in the property market. This unprecedented decline has been influenced by various factors, including government regulations, economic uncertainty, and changing buyer behavior. For real estate developers and investors, this is a critical moment to reassess their strategies and consider international opportunities.
As home prices continue to fall, wealthy Chinese investors are seeking ways to protect their assets and generate stable returns.
Moving money out of China and into international real estate markets offers a viable solution. By investing in properties in countries with strong economic growth and stable real estate markets, Chinese investors can diversify their portfolios and mitigate risks associated with the domestic market.
UAE Real Estate: A Prime Investment Opportunity / The Allure of the UAE
The UAE, particularly cities like Dubai and Abu Dhabi, has emerged as a top destination for international real estate investment. Known for its luxury lifestyle, modern infrastructure, and strategic location, the UAE offers a plethora of opportunities for Chinese investors.
Key Benefits of Investing in UAE Property:
1. Strong Economic Growth: The UAE boasts a robust and diversified economy, with sectors like tourism, finance, and technology driving growth. This economic stability makes it an attractive destination for real estate investment.
2. Tax-Free Environment: One of the biggest draws for international investors is the UAE’s tax-free environment. There is no income tax or capital gains tax, allowing investors to maximize their returns.
3. High Rental Yields: The UAE offers some of the highest rental yields in the world, particularly in prime locations. This makes it an excellent choice for investors looking to generate passive income.
4. Strategic Location: Located at the crossroads of Europe, Asia, and Africa, the UAE is a global hub for trade and travel. Its strategic location enhances its appeal as an investment destination.
5. Market Growth and Stability: In Q1 2024, Dubai’s real estate market witnessed a 20% year-over-year increase in sales transactions, reaching 37,154 transactions valued at AED 109.85 billion. This significant growth highlights the strong investor confidence and market liquidity in the region.
