Chinese investors are gradually returning to Dubai’s real estate market, joining Russian and other international buyers who have already pushed property prices in the emirate to record levels.
At the city’s largest developer, Emaar Properties PJSC, buyers from the Asian nation doubled to 8% of the total during the first half of 2023 from 4% through 2022, according to a report by CI Capital, which cited an analyst call with the firm’s management. While those levels are still below the peak of 13% to 14%, Chinese demand could become a key factor in helping to shore up demand in the emirate’s property market.
Russians were the biggest buyers of Emaar developments during the first quarter and demand remains strong, according to the report’s author Sara Boutros. CI Capital estimates that Emaar sales are likely to reach 33 to 34 billion dirhams ($9.3 billion) this year, a 10% increase from 2022.
“Emaar’s nationality mix is important because the company acts as a proxy for the wider real estate market in Dubai,” she said, adding that the developer has the biggest market share with around 30% of all home sales ahead of construction.
Dubai’s property market has been booming, bucking the trend in many parts of the world, where home values have dropped amid surging interest rates and a darkening growth outlook. The recovery, which capped seven years of price declines, started after the pandemic and was fueled by an influx of newcomers — from crypto millionaires and bankers relocating from Asia to wealthy Russians seeking to shield assets.
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