Chinese buyers are prepared to regain their prior prominence this year after losing it during the COVID epidemic, ranking first among top real estate purchasers in the UAE says Abdullah Alajaji.
Investments, according to Driven Properties, a corporation with offices in China and a base in Dubai, were allegedly starting to rise.
Although this amount has barely “scratched the surface” of what is anticipated, the company has sold more than Dh64 million in real estate in Dubai this month to Chinese buyers. The UAE will be included on a test list of 20 nations starting in February, when tour groups from China will resume.
Among the countries where Chinese travel agencies might start providing excursions are the Philippines, Singapore, the United Arab Emirates, Sri Lanka, South Africa, Russia, New Zealand, and Argentina.
Chinese, Indians, Britons, and Pakistanis were the top four foreign nationalities investing in real estate in Dubai in 2018, according to data from the Dubai Land Department.
The surface being scratched
A year before the epidemic closed international borders, the Dubai Land Department had prepared to enhance promotional operations in China.
Due to tight quarantine regulations, Chinese investors had to postpone purchasing property in the UAE.
The hundreds of thousands of Chinese purchasers who were often present in the market were not, according to Abdullah Alajaji, “the transaction quantities we were used to seeing.”
“We are witnessing greater momentum, a four-fold rise, and this is just our firm statistics.” Come January 2023. We will have just begun to scratch the surface.
Chinese purchasers have transacted more than Dh64 million at Driven Properties this month, compared to Dh16 million in January 2022.
Between 2017 and 2019, Mr. Alajaji’s business handled Dh1.15 billion in sales from Chinese clients.
Dubai’s Most Desired Neighborhoods
Chinese buyers often prefer studio apartments.
Dubai Downtown, City Walk, and Business Bay are a few of the well-liked neighborhoods.
Mr. Alajaji stated, “It’s interesting to see the difference in demographics.”
The waterfront was where the Russians made around 80% of their purchases.
“For the Chinese, studios would make up the majority—roughly 80%.”
A move by Chinese investors to Dubai?
Before the pandemic, Chinese buyers who purchased apartments kept their investments in the market and did not sell their homes.
Additionally, we need to see people selling the homes they previously purchased.
Instead, purchasers request upgrades, such as switching from a studio to a two-bedroom before handover.
They might be doing this because they want to stay longer, visit more frequently, or even move here.
“Do we see this evolving from being investments into vacation houses that evolve into permanent homes?” In the upcoming months, we can confirm this. I need to see why the Chinese won’t represent the new trend.
Increased Interest Rates
Although the effects have not yet been noticed in the UAE, higher interest rates have hurt housing markets worldwide that did well during the epidemic.
Because Chinese investors often do not take on mortgages, Abdullah forecasts sustained expansion for the UAE market.
Almost all real estate markets are currently experiencing difficulties.
Because homeowners would find it difficult to make both principal and interest payments on their mortgages, the dread of rising interest rates is a ticking time bomb.
During the pandemic, Chinese investors who resided abroad purchased second homes in Dubai’s wealthy neighborhoods.
Over almost three years, the firm handled around 30 transactions worth $10 million.