In the recent past, the government of Dubai has been on top of their game to make the city a lucrative investment destination for investors from all over the world- especially Chinese investors. A report by the Dubai Land Department (DLD) 2018 indicates that Chinese investment in real estate accounted for AED 1.7B in 2018.
Furthermore, Chinese investors are among the top four foreign investors which clearly indicates the heightened interest from Chinese investors in Dubai’s real estate market.
Factors promoting Chinese real investment in Dubai’s real estate market
The infiltration of Chinese investors in the real estate market can be attributed to two major factors; affordability of the properties and friendly payment plans. Experts indicate that Chinese nationals prefer to invest in Dubai because it is cheaper compared to big cities in China like Beijing and Shanghai. In terms of payment terms, most developers allow Chinese investors to pay in instalments over a certain period of time.
Another major aspect that has contributed to the rise of Chinese investors in Dubai’s real estate is the fact that DLD has representatives in Beijing. This has strengthened the trust between investors and developers in Dubai.
Properties investment opportunities for Chinese investors in Dubai
Most Chinese investors prefer to invest in the off plan market Dubai compared to ready properties. The main reason is due to the flexible payment plans that come with off plan properties in Dubai. Instead of taking a mortgage, payment is spread over a long period of time sometimes even five or six years depending on the developers.
The friendly payment methods found in Dubai are not available in the Chinese real estate market. In China, investors are required to pay mortgage upfront which is not viable for most investors.
Dubai has a wide range of properties on sale with new ones being added now and then. Apart from the flexible payment plans, the location of the property is a key factor for Chinese investors. Most Chinese investors are interested in the iconic tourist hub of Downtown Dubai. Also, the Dubai Creek Harbour has been gaining popularity among Chinese investors.
The increasing number of Chinese investors in Dubai is adding to the rapid growth of the city. Emaar Properties which is one of the biggest developers in Dubai recently announced that they will be constructing the biggest Chinese neighbourhoods in the region. The developer is also developing Arabian ranches Villas which consist of villas and townhouses. This project will attract Chinese investors because it is one of the biggest off-plan properties in Dubai and is being offered at very flexible prices.