Dubai a New Hotspot for Chinese Property Investors
This has seen the Middle East city of Dubai become the new hotspot for Chinese property investors, overtaking the traditional favourites of European property markets in countries like Portugal. This is so because of developments in the real estate market in Dubai and the golden visa system in the UAE.
Over the recent past, Dubai has experienced a surge in Chinese property investors. Mark Elliott, Senior Director and Head of International Residential at Savills, defines that the interest from Hong Kong buyers has increased 10 times compared to the previous year. The UAE especially Dubai has witnessed a significant rise in luxury real estate with home prices rising by 70% in 2023.
Golden Visa Attraction
The Chinese investors are interested in the golden visa in Dubai as well as other measures that are in place. This program gives permanent residence permit for individuals who make an investment of not less than 2 million dirhams or about 544 thousand US dollars in property. By 2023, Dubai granted 158,000 golden visas, which is more than half of the 13,000 that Portugal has granted since its program started in 2012. This ease of getting residency is one of the key factors that make many Chinese investors to look for a stable and best investment environment.
The government of Dubai has continued to extend the development of the city and this also adds on value to the city. Future expansions of Al Maktoum International Airport and completion of the Etihad Rail will only enhance the relation and economic development of the city. Furthermore, Dubai has set the goal to become one of the four leading world’s financial centers, which is now occupied by Hong Kong.
This trend is well exemplified by several high-stake property deals with Chinese buyers. For instance a beachfront house on Palm Jumeirah measuring 10000 square feet was sold for $24 million. Such sales go to prove that Dubai is slowly but surely becoming the next big market for luxury real estate.
With investor-friendly policies, huge investment in infrastructure, and a direction of where Dubai is headed, Chinese investors still find it a very attractive market. The for the city real estate market is expected to grow in the future and this will make this city more attractive for foreign investors.