Dubai Property Market Set For Year Of Chinese Investors In 2024 Experts Say

Reopened borders, the housing crisis, and the slump in the economy are encouraging Chinese purchasers to purchase homes abroad.
According to experts, Chinese buyers are coming back to Dubai's real estate market in greater numbers.
Following the Covid epidemic, China reopened its borders, and the country's property crisis has led investors to look for safe havens for their money around the world.
According to the business, Chinese investments into projects, the largest property developer in Dubai, roughly doubled to account for 7% of total sales in the first half of 2023, up from between 3% and 4% in the same period a year earlier.
Chinese investors are returning to the Dubai real estate market due to pressure on the housing market and loosened travel restrictions.
"Dubai's attractive residential rental yields of 6 to 7 percent and its investor-friendly environment, including low transaction and rental income tax, a US dollar-pegged currency, and zero capital gains, all support international flows into the sector."
Following Beijing's lifting of its tight quarantine travel requirements and zero-Covid policy, buyers from China are anticipated to start buying again in the UAE.
In the midst of high demand and sustained economic expansion, Dubai's real estate market is flourishing. Government programs including retirement and remote worker residency permits have aided the sector's post-pandemic recovery. The housing market boom, which has been fueled by an inflow of new immigrants, particularly wealthy Russian purchasers and executives in the cryptocurrency industry, is not anticipated to slow down anytime soon as a growing population, cheap taxes, and the general upbeat mood in the world economy, according to analysts.
According to Knight Frank's most recent study, residential property prices in the emirate increased 17% year over year in the second quarter, marking the 10th straight quarter of growth.
A Dubai-based firm with offices in China reported selling properties to Chinese and Hong Kong investors for over Dh1.25 billion ($340 million) in the first half of 2023, more than tripling from Dh351 million in the same time in 2018.
The liberalization of China's borders "helped enormously," but Beijing's real estate debt crisis is causing local investors, who consider real estate as a secure place to deposit their money, to become fearful and look for new markets outside.
"This year, more Chinese tourists and visitors are traveling to Dubai to make investment decisions. This is due to the fact that Dubai has long been a popular travel destination and to the developments in China.
The company expects property investments from Chinese buyers to grow to nearly Dh2 billion in 2023 from Dh721 million last year, as China's property woes persist and its economic growth decelerates.
“We're barely scratching the surface, because the last quarter of the year for the property market in Dubai is the most liquid and records the most transactions, from both local and international buyers, adding “2024 will be the year of Chinese property investors”.
Based on data from July and August and huge groups of investors visiting Dubai to evaluate homes, the company, which has an office in Shenzhen, is already observing a surge in the growth velocity.
When asked about the trajectory of Chinese investment growth in 2024, the company stated, "We anticipate growth to continue within the premium class. When compared to the luxury real estate markets in London, New York, and other international cities, Dubai's prices are incredibly attractive.
Although Dubai has seen a rise in house property prices to record highs, several analysts stated the demand from Chinese investors is not anticipated to significantly swell market levels.
The UAE is expecting investment momentum to increase up as Chinese purchasers begin to return slowly.
"However, given the current momentum and the continued and strong international demand, we do not foresee this to disrupt the real estate market or add to the upward pressure on home prices.

By: Nitin Bhargava

Date Created: 2023-09-16 15:44:16