According to Knight Frank, Dubai’s business hub is the latest city to experience a post-pandemic rebound in luxury home sales.
With a record burst of sales in Dubai’s luxurious areas in the first five months of the year, a total of 22 properties worth more than $10 million found a buyer, the most since 2015 and up from a total of 19 last year.
Furthermore, the recent surge in Dubai real estate investments from Chinese investors has also ensured Dubai’s growing attraction globally.
The ups and downs of the Chinese investor’s activity
Despite Chinese investors being among the top four nationalities who invested in Dubai real estate, the buying activity is still severely depressed compared to prior years because of the pandemic and what had been a week market.
Juwai IQI Group Co-Founder and Executive Chairman Georg Chmiel said:
“Chinese buyer activity is rapidly recovered from the low levels hit during 2020. The recovery is still in the early stages, but in the first quarter of 2021, Chinese buyer enquiries for UAE property hit their highest level in more than a year. The year-on-year growth rate in Chinese buyer inquiries hit the triple digits and reached 209% in Q1. This early first-quarter search is likely to continue through the remainder of the year.”
Thus what is making Dubai an attractive place investment in 2021?
Due to lower supply, rising prices and new government policies, Dubai’s pandemic-enhanced profile and the likelihood that travel between China and Dubai will resume later this year, the market is now in a growth phase for Chinese demand.
The most important single factor driving Chinese investment in demand is that prices look to be on a growth path that could last for the next several years.
Chinese investors, in general, prefer to buy into rising markets where they can easily visualize future capital gains. It takes a rare type of individual to purchase in a market that is falling or has bottomed as, as Dubai’s did over the past few years.
An important factor is that the Chinese feel safe in Dubai. The fact that Chinese tourists who have been trapped in the country due to travel restrictions have received vaccines has been a huge boost for Dubai’s profile. It has attracted attention from buyers who otherwise might not never have considered Dubai.
What are the trends regarding Chinese buyers investing in Dubai property?
Based on the latest Juwai-IQI’s findings, Chinese activity is still relatively low, especially compared to prior years.
With China and the United Arab Emirates rapidly inoculating their populations, free travel could resume this year, with an expectation on demand to continue to recover and gain pace.
With a sense of uncertainty and too much to process, getting the right professional assistance could make a difference.
Get in touch with our representative in Dubai for your next step in an investment of a lifetime.
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