Chinese Investors Step-up into Dubai Real Estate

By Rocky Real Estate

Chinese Investors Step-up into Dubai Real Estate

Dubai has become one of the top investment destinations for Chinese investors since last several years. Over 200,000 Chinese expats are living in the United Arab Emirates (with over 80% based in Dubai) & around 4000 Chinese companies have presence here. There is no doubt that they are now among the top foreign investors in Dubai properties.

According to the Dubai Land Department (DLD), Chinese nationals invested around Dh 1.7 billion during the first three quarters of 2018, making them sixth highest nationality by investment. With more affordable units up for delivery this year, the investments are expected to grow.

One driving factor into this development is the fact that in the recent years, UAE and China have fostered strong ties in terms of bilateral trade. In 2016 alone, trade between UAE and China reached a value of more than AED 176 billion. Moreover, UAE government has also announced to list Chinese as the third major language in more than 100 Dubai schools.

Downtown Dubai, Greens & International City are the most sought-after locations by Chinese investors. They are buying both off-plan & ready properties and weigh in selling prices, annual yields & location while making the purchase decisions. Annual yields ranging from 6-10% work as the primary incentive, compounded by the fact that the average selling prices of Dh700 per sq.ft – Dh2,200 per sq.ft are equivalent to one sixth to one fourth of the selling price in Downtown Shanghai, China.

Apart from real estate investments, Chinese companies are also active in the construction industry in Dubai. Chinese construction companies are among the top 5 contractors in the UAE. Not only that, but most of these companies also provide construction finance and loans. You can find these companies in commercial space for rent across Dubai. Just to give you an example, the China State Construction and Engineering Corporation is considered to be the second biggest contractor. Their projects reach as much as $3 billion and they currently have 16 ongoing projects in the UAE.

Consider this as well: about 6 percent of the total value of construction contracts in the UAE is held by Chinese firms. In Dubai, the figure is even higher reaching up to 7 percent. This figure is expected to increase up to 9 percent by 2020.

As local real estate companies see China as a rich avenue for potential buyers, they are tying up collaborations with Chinese brokerages based in China. As a result, there are constant marketing campaigns, expos, and roadshows in China that feature UAE’s residential and commercial property for sale.

There’s no doubt that the outlook of Dubai’s real estate is positive. With more investors coming into the country, the real estate sector is expected to grow. If you want to take advantage of this expected market upswing, it would be wise to take steps now.

Thankfully, Rocky Real Estate is here for you. We provide professional real estate brokerage and consultancy services to help you make the right decisions. We have some of the best real estate agents in Dubai who have the right knowledge, expertise, and experience. We discuss with you your options as a property buyer or seller and guide you through every step in the process. Call Rocky Real Estate today to learn more!