As the Dubai authorities are taking more steps to ensure foreign investors a healthier environment for doing business and guarantee full transparency of the property market, Dubai real estate’s popularity among foreign investors is growing.
According to data collected by one of the Chinese analytical portals, Dubai’s property popularity among Chinese investors has risen by a staggering 1200% year-on-year in August. In comparison, Purchasing Intent Index, which characterizes the demand for housing in countries traditionally popular among the Chinese, such as the US, Australia, UK and Canada, grew by only 30% year-on-year.
Chinese companies are also taking a closer look at the Dubai real estate market. For instance, Dubai developer Skai Holding has recently received a USD 300 million loan for a new serviced apartments construction in Palm Viceroy and Viceroy Dubai Jumeirah Village from a syndicate of local and Chinese banks.
According to CBRE, the amount of investments in foreign property from China increased over the past six months by 46% and amounted to USD 6.6 million. “One thing Dubai has going for it is that Chinese buyers appreciate high quality, new construction, and the emirate has that in abundance,” the report said. Therefore, despite the fluctuations in Dubai property market in recent months, Dubai is still considered high value-enhancing and, more importantly, a safe destination for investments.
Additionally, according to Knight Frank, rental yields in the mainstream Dubai property segment keep rising: in particular, rental yields from a property in popular Dubai locations stand now for an average of 7%, never to forget that returns here are always tax free.