Chinese investors are heading back to Dubai as one of the world’s most exclusive markets continues to heal since the pandemic outbreak.
Dubai’s residential market ended 2021 on a high, recording 84,196 transactions worth AED300 billion, the highest ever recorded, according to official Dubai Land Department statistics.
It carried the momentum into this year, with residential market transactions reaching 6,342 in April 2022, up 43% from a year earlier, according to the latest data released by CBRE.
“Dubai has always been a great option as one of the most popular destinations for investing overseas. This year we had transactions for whole buildings and floors which were purchased by renowned Chinese investment groups and individuals,” said Saad Haq, Group CEO of H&S Real Estate.
Kashif Ansari, co-founder and CEO of Juwai IQI Group, also spoke of ongoing corporate and institutional Chinese investment in the Emirates. “Look at ByteDance’s investment in iMile Delivery LLC and Jinsha Holding Group’s pledge to invest $2 billion in real estate, among other sectors.”
While traditionally more interested in the US property market, Chinese investors have recently reignited their keen interest in Dubai property. Chinese investment in UAE property dipped during and after the pandemic but has been bouncing back, according to industry experts. From a high of AED3.97 billion pumped in during 2019, following strong investment of AED1.7 billion in the first nine months of 2018 alone, China’s love affair with Dubai property stalled in the wake of the global lockdown.
The country ranked as one of the top four foreign investors in the market, and data from Juwai IQI suggest that the Chinese demand for UAE properties has been returning since the second quarter of 2021. This, according to Ansari, “denotes a reservoir of Chinese demand for property in Dubai.”
“Dubai today is much more affordable than at the peak in 2014,” he said, adding that Dubai units are larger, amenities more abundant and prices lower than in China. “You can live with resort-like comfort for less than you would pay to live in a normal apartment in a Tier One Chinese city.”
