Chinese real estate investors have set their sights on Dubai as a destination for investment and opportunities in China will lose its luster after the recent turbulence in the stock markets.
In Dubai, rental yields of residential properties are 8 percent on average annually, driven by demand from expatriates strong, stable, according to the agent Lisa Luo property, which has been based in the city in the UAE States for eight years.
This compares with yields of only 2-3 percent in China, Luo, property consultant Knight Corte Real Estate said.
"Expatriates account for about 80 percent of the population of Dubai," he said. "There are also a growing number of Chinese companies setting up offices in Dubai, which is driving the demand for rental."
Luo said that an investor could buy a one bedroom apartment in Dubai for 1.5 billion yuan (HK $ 1.82 million) and receiving up to 150,000 yuan rental income a year, for example. Seeing an opportunity, he said, Chinese investors are increasingly willing to enter the real estate market of Dubai.
China's property market, by contrast, had lost its appeal due to their low rental yields, Luo said. It was also difficult to find investments with good returns amid turmoil in the stock markets of the country and under its environment of low interest rates, he added.
Luo said the tourism business in Dubai and next World Expo 2020 will further buoy the property prices in the city.
The Chinese buy real estate abroad, revealed that the number of Chinese citizens interested in purchasing property in Dubai has increased 1,200 percent last month in the same period last year.
Dubai Properties real estate developer Damac - showing a luxury project with villas and golf courses in an exhibition Guangzhou property - said investing in this project could provide an annual return of 8 percent in the first three years.
The return rate was achievable as leasing market of Dubai was stable and driven by demand from expatriates working in the business center of the Middle East, said sales manager Wang Huimin Damac.
"Chinese investors are trying to diversify their portfolios abroad ... Dubai, where the housing market is well regulated, has been a top pick for those looking to invest in the Middle East," he said.
Wang said that property prices in Dubai had seen little change since June last year due to an increased supply of new homes and a drop in oil prices, but the emerging market had good potential for appreciation over the long term.
Farid Jamal, sales and leasing of houses Cayan senior manager, said the lifestyle of the city and the safety and perpetuity of the property has also contributed to the rising interest of Chinese investors. Cayan arm Casas realtor developer Cayan Arabia Group, which developed the iconic twisted Cayan Tower in Dubai Marina del.
"The Chinese investors are interested in Dubai property. We received good questions to our [luxury residential] project," Jamal, who presented the project in Guangzhou show property last week he said.
Annual rental yields in Dubai could reach 8-9 percent in terms of projects and areas, Jamal, adding that properties priced between US $ 200,000 and US $ 400,000 would be more affordable for Chinese investors and said also it offers good performance.
"Dubai provides a better return on property investments that other countries do," he said.
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