China’s biggest international property portal reports surge in interest for Dubai real estate, prompted by high yields and strong long-term growth forecasts.
- 2016 has seen a significant rise in the number of Chinese property investors looking to buy real estate in Dubai
- Juwai.com has seen an 85% rise in enquiries for property in the emirate from Chinese buyers over the past 12 months compared to the previous year
- With many domestic markets struggling, investors in the Far East are attracted by Dubai’s high yields and the prospect of strong long-term growth ahead of Expo 2020
Is Dubai about to witness a new era of property investment from Chinese-based investors?
New figures from China’s biggest property portal, Juwai.com, show a significant spike in interest from buyers for property in the emirate.
Enquiries on Dubai and UAE property on the platform rose by 40% in the first half of the 2016. Looking at the year as a whole, the number of search hits recorded for Dubai real estate were 85.3% higher than they were over the same period the year before.
Low yields and capital returns domestically, combined with volatility in financial markets, has prompted more investors in China to look overseas to add high-returning assets to their portfolios.
In Dubai, investors in some areas can find yields as high as 10%, among some of the highest of any city globally.
Investors have also been enamoured by recent forecasts from global real estate firms such as Knight Frank and CBRE, predicting that Dubai’s property market will witness the start of a new growth curve at the start of 2017.
Furthermore, close cordial ties between China and the UAE has helped to drive the growth of the Chinese expat community in the emirate, growing by 53% in the last five years to 230,000 people.