Dubai has always been one of the most popular destinations for investing overseas. Chinese investors, who are traditionally keen on the US property market, are now turning their sights towards the world’s highest ROI market. The momentum from last year, when Dubai recorded 84,196 transactions, which were worth a whopping AED300 billion, is continuing well into this calendar year.
Chinese investment in UAE properties dipped during and after the pandemic but is now on the resurgence. From AED 3.97 billion pumped in during 2019, China’s interest in Dubai properties has aggressively bounced back, and how!
Post pandemic, the situation is such that Chinese investors are now zeroing in on the kind of properties that could be a second home as well as a sound investment. These units tend to be larger, amenities more abundant and prices lower than what is currently available in China. Investors are looking at apartments for self-use and villas and townhouses for investment purposes. With many Chinese companies establishing permanent offices in Dubai and elsewhere in the UAE, residential property as an asset has grown in popularity. Luxury branded apartments are quickly coming into demand.
Dubai property prices have been forecast to close in on peak values last seen in 2014, as demand continues from both local and international buyers. UAE is now witnessing average property prices rise by 11%, but at the same time managing to stay lower than its previous 2014 peak. In March 2022, average apartment prices in Dubai stood at AED1,097 per square foot and the average villa prices stood at AED1,291 per square foot, according to CBRE data. The residential market transactions reached 6,342 in April 2022, up 43% from last year. The factors that contribute to the spike in interest seems to be the attractive government visa schemes. The UAE establishing itself as a hub for best-in-class economic growth whilst pioneering the fight against COVID-19 has also greatly helped matters.