Tuesday , December 10 2019

Chinese investments in UAE real estate to surge 70%

DUBAI / Emirates Business

Chinese investments in the UAE real estate sector is set to surge in the coming months and will grow over 70 percent during 2019, reinforcing the growth potential on offer in the country, according to Fidu Properties, one of the leading Chinese companies in the UAE property market.
Chinese investments have gone up 64 percent between 2016 and 2017 and this trend has continued in 2018 and the Q1 of 2019. Currently, Chinese investors are among the top four nationalities who have invested in Dubai, according to official statistics.
Investors from China accounted for AED1.7 billion worth of investments in Dubai in the first nine months of 2018, as per the latest period for which figures are available from Dubai Land Department [DLD].
The total worth of real estate transactions in the emirate during the period was AED 162 billion.
Fidu Properties’ optimistic standpoint comes amidst proactive steps by government departments such as DLD to attract Chinese investments in the real estate across Dubai and the UAE. As part of this, DLD has also announced plans to ramp up efforts to attract at least AED1 billion in inward property investment from China in 2019.
To step up Chinese investments in the country, DLD has also opened its two representative offices in China in the past two years including Beijing last June and aims to open a third in the southern industrial city of Shenzhen, and other regions.
Nazish Khan, Chief Operating Officer at Fidu Properties, said: “Chinese investors are looking to invest abroad to diversify. Given that the real estate prices in the UAE and Dubai are much lower than in China, coupled with the taxation structure and other incentives make UAE one of
the best global markets to invest in. The recent residency ownership laws that allow non-Emirati entrepreneurs to set up their base in Dubai is also a major boost for Chinese investments.”
He added: “With a good mix of strategic locations and perfect growth in rental yields, the stage is set for growth trends to continue and cross 70 percent during 2019. It is a buyer’s market in Dubai and Chinese investors are set to lead the way.”
Other economic factors are also contributing to the surge in Chinese investments in the UAE and Dubai real estate sector. These include 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 including freehold ownership, high rental yields, affordability and tax-free investments.
The number of Chinese expats in Dubai has increased by 53 percent over the last five years, with around 230,000 Chinese nationals currently living in the Emirate and around 4,000 Chinese companies operational in Dubai.

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