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Chinese investments in UAE real estate set to grow 70% during 2019
Fidu Properties has reaffirmed that Chinese investments in the UAE’s real estate sector are set to surge in the coming months, and will grow over 70 per cent during 2019, reinforcing the growth potential on offer in the country.
Chinese investments have gone up 64 per cent between 2016 and 2017, and this trend has continued in 2018 and the first quarter 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 Dh1.7 billion worth of investments in Dubai in the first nine months of 2018, according to figures available from the Dubai Land Department (DLD). The total worth of real estate transactions in the emirate during the period was Dh162 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 Dh1 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. With a good mix of strategic locations and perfect growth in rental yields, the stage is set for growth trends to continueand cross 70% 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 per cent 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. Following the visit of Chinese President Xi Jinping in July 2018, the ties between China and the UAE have become even stronger.
“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.
Source : Business@khaleejtimes.com