The UAE remains optimistic about luring buyers from Asia’s largest economy despite Chinese investments in the real estate sector picking up more slowly than expected due to competition from other markets and the size of the investment pot and a surge in inquiries.
According to a survey by Ernst & Young, China’s overall direct investment (ODI) was $40.5 billion in the first quarter of 2023, an impressive year-over-year (YoY) rise of 18 percent. The real estate, hotel, and construction sectors accounted for 26 percent of the total deal value globally, or $918 million, representing a growth of 191 percent (YoY).
Chinese consumers with higher incomes have built $886 billion in surplus savings since 2019, according to Kashif Ansari, co-founder and group CEO of Juwai IQI. He pointed out that the wealthy Chinese are once again investing abroad, particularly in the UAE, despite the loosened travel restrictions and the difficulties faced by many smaller cities at home due to weak developers and slow economic growth.
Ansari used industry statistics to say that in 2022, Chinese buyers of residential real estate spent $6.1 billion in the US and roughly $500 million in Australia. He claimed that when it comes to buyer inquiries this year, Australia is at the top, followed by the US, Canada, the UK, and Thailand.
The top ten Chinese investment destinations are all in South-East Asia, including Thailand, Malaysia, Vietnam, and Singapore. According to Ansari, Dubai continues to be the leading destination for Chinese purchasers in the Middle East, with the UAE ranking first in the region and sixth internationally.
New townhouses in Sydney with four bedrooms are being snapped up by Chinese buyers for $3 million. They buy in Palm Jumeirah and other upscale neighborhoods in Dubai. He predicted that Dubai will be among the markets where Chinese markets would grow most fast this year.