Major Chinese real estate company president for abroad sales Bernie Morris shared the sentiments his countrymen have with respect to investments in Dubai’s real estate.
It is no secret that due to population growth and economic recovery high-net-worth individuals (HNWIs) and just wealthy citizens of China and India today represent the lion's share of high-end home buyers worldwide. However, the whole world is no longer equally attractive for them now, as it was before, experts say. In particular, Morris noted some confusion Chinese homebuyers feel after Brexit, which resulted in a decline in European sales. Therefore, now it is time for Chinese investors to pay attention to the UAE as "a safe heaven, away from all the winds of instability in the today’s world," Morris said.
Above all, Chinese investors are interested in reasonably priced high-quality new properties in Dubai. They tend to primarily invest in off-plan property or newly built units. A large target group of buyers for real estate developers and brokers may be represented by Chinese parents buying Dubai’s property for their children for the time of their study at the UAE’s universities. For example, in Australia foreign students bring up to USD 18 billion to the country’s economy annually, while Australia is only about twice the size of the UAE. Another group of Chinese property investors is formed by those wishing to get a consistently high rental income, and in Dubai rental yields rate is one of the world’s highest.
Considering all these factors, Chinese property buyer’s market will be given special attention at the Cityscape Global, a big property show which is about to be held in Dubai from 6 to 8 September.
According to Dubai Land Department, in the first five months of 2016 foreign investments in Dubai real estate amounted to AED 12 billion (USD 3,27 billion). Citizens of countries neighboring the UAE showed the greatest activity in property sales market, followed by Indians, the UK citizens and Pakistanis.