Chinese investments to grow by 70% during 2019 in UAE real estate sector.
UAE-based Chinese property broker Fidu Properties said Chinese investments in the local real estate sector would top 70% in 2019, with the Asian country’s investors growing by 64% between 2016 and 2017 to become among the top four investors in Dubai real estate as of 2018.
In the first nine months of 2018, Chinese nationals have invested AED 1.7 billion into Dubai, according to Dubai Land Department (DLD).The total worth of real estate transactions in the emirate during the period was Dh162 billion.
FIDU Properties is optimistic about the procedures taken by the local authorities, including DLD, to attract Chinese investments to the real estate market in the emirate.
The company added that UAE-China ties had deepened “following the visit of Chinese President Xi Jinping in July 2018”.
In the same vein, DLD has unveiled plans to attract around AED 1 billion Chinese investments in the real estate market this year.In an attempt to boost Chinese investments in the country, DLD has opened two representative offices in China in the last two years and is planning to open a third one.
Fidu Properties’ chief executive officer, Nazish Khan, said: “Chinese investors are looking to invest abroad to diversify.Given the real estate prices in the UAE and Dubai being much lower than in China, and coupled with the taxation structure and other incentives, UAE ends up being one of the best global markets to invest in.”
Khan added that recent visa laws allowing foreigners to set up base in Dubai for both residence and entrepreneurship was a major boost for Chinese investments.
Some other Economic Factors
Other economic factors such as the current trend of the real estate and stock markets in China, the depreciation of the Chinese Yuan, and the advantages of the Dubai real estate market are also contributing to the surge in Chinese investments in the UAE and Dubai real estate sector. These advantages include including freehold ownership, high rental yields, affordability and tax-free investments.
“Moreover, with Expo 2020 just few months away, Dubai’s status as an investment destination is also on growth trajectory for Chinese investors,” Khan added. Quality will continue to be a focus for those looking to buy and there will be increased interest from international investors, particularly Chinese nationals, he said.
It is worth noting that the number of Chinese arrivals in Dubai rose by 53% in the past five years, with almost 230,000 people currently living in the emirate and around 4,000 Chinese firms operating there.