A new report published in Juwai, listed the UAE real estate among the top 10 property Chinese property buyers are interested in.
Juwai is a portal that promotes international and overseas properties in China and Hong Kong. A study published in this portal listed the top 10 countries where Chinese buyers are interested to buy properties in and the UAE was placed on the eighth rank in this list.
The major reason why the UAE real estate was given a prominent position in this list is the increased number of indexed enquiries Juwai received from Chinese buyers. In simple words, a lot of people in China want to buy property in UAE. The company stats show that these numbers saw a surge of 43% in the previous year. Not only this, but they have also quadrupled if we take the year 2018 into consideration.
With Dubai Land Department having offices in Shanghai and Beijing, it has also contributed to the growing interest of Chinese buyers to see the UAE as a potential investment spot in the real estate sector.
Going by the records, from January 2108 to September 2018, transactions worth Dh1.7 billion were made by Chinese buyers/investors in the UAE. This figure helped them to get a prominent spot among the four nationalities that purchased the most number of properties in this region.
As per Mr. Chimiel, the owner of Juwai, believes that due to the ongoing pandemic, it has become difficult to complete property transactions for overseas buyers this year. Needless to say, the reason is travel restrictions imposed by many nations in order to limit the risk of COVID-19 spreading even more. Despite having the facility to tour the properties virtually, signing the contracts on the proposed dates is quite impractical. This issue can only be resolved when these restrictions are eased out. However, Mr. Chimiel still believes investors are interested in buying properties in the UAE as they are looking for ways to protect their money and keep it safe for future investments.
He further argued that Dubai, an investment hub in the UAE, shouldn’t think about yielding returns or profits but long-term safety for investors. He is of the view that Dubai is in the right position to protect the interests of investors; hence, it can play the role of a global safe deposit box in the real estate market. The city, as per Mr. Chimiel, has earned this status due to its safe and profitable investment market.
According to Juwai’s report, other than the UAE, Australia, Japan, Thailand, the USA, and Canada were the other top international real estate markets for Chinese investors in the year 2019. This shows that Chinese buyers have shown their keenness in buying cross-border property. This interest of these investors is growing at a rapid pace due to the higher gains they get. With more keenness shown by Chinese investors, international real estate markets have also changed their strategies and are now competing in a more active manner to grab the interest of the overseas investors and receive the investment boost they bring.
Stats by Zoom Property show that Dubai’s property transactions witness a growth of 9.7% in Q1, 2020. This growth was noted despite the market slowing down towards the end of the quarter due to the COVID-19 and restrictions that were imposed by this pandemic in the region. On the other hand, supply level remains on the higher side of the spectrum. By April 29, 20,000 housing units were handed over to the buyers. Moreover, there are a lot of property for sale in UAE offers by developers and builders as well that too at reduced rates.
UAE Real estate experts believe that despite the dip in the market, the real estate industry will emerge out stronger due to the proactive and swift actions taken and policies implemented by the government.