There has been considerable surge in Chinese Investment in the UAE. According to the data revealed by the Dubai Land Department (DLD) the total amount of Chinese Investment in Dubai market (Including land & offices along with residential assets) is in tune of AED 1770 (USD 482) million, a substantial increase over the last couple years as captured below.
Though it is still comparatively little when compared with the total amount of investment in Emirate- AED 236, 000 (USD 64,250) million. The realty landscape in the Emirate is still dominated by Indian, British, Pakistani & Saudi Investors. However, the sudden leap in Chinese investment is indicative of a the fact that in the near future Chinese will become one of the force to recon with in terms of investment in the Dubai real estate industry.
There are multiple factors that is driving the investment by the Chinese Investors in Dubai market. Firstly Dubai’s real estate industry is one of the fastest growing realty markets across the globe. The market has appreciated by over 50% in 2013-14. Although the market has recently flattened, the underlying fundamentals are still very strong and the Emirate still offers great opportunities towards mid-long term investment.
Secondly property prices in numerous Chinese cities have escalated to exorbitant rates which makes Dubai a suitable alternative. Prices in Chinese cities are higher than Dubai in tune to 3 to 5 times. Likewise a devaluating Yuan & slowing down economy have also made other investment instrument such as equities not a very attractive option for Dubai based investors.
The surge in the Chinese interest in Dubai can also be explained on the back drop of rising Chinese population in Dubai. It is anticipated that in International City alone, the locality where the world famous Chinese Dragon Mall is located, has a total population of over 50, 000 Chinese nationals- Nearly half the population of International City. Likewise, the Chinese contractors & banks are exploring new opportunities in the city, thereby taking up the relationship between the Emirate & the second largest economy in the globe to the next level.
On the backdrop of rise in relationship between China & Dubai, it is expected that more Chinese investors will enter the Dubai market in the near future, thereby ramping up the present share of Chinese investment in Dubai.
