As domestic market slows, Chinese investors are now the top buyers in the Dubai real estate property market

Dubai property has now a new knight in shining armor with a lot of cash to burn. Yes, the mighty Chinese with deep pockets for investments are now focused on the Dubai real estate industry as the local market loses its shine. Chinese property investors are the "go to" property investors as Dubai real estate itself is facing a mini slowdown in the past couple of months in 2015.

Better Rental Yields on Residential Properties

The major point of attraction in Dubai for the Chinese investors is the very lucrative and stable rental yields for residential properties which are close to 8 % yearly and it looks to grow further based on the huge demand by the expatriate community who have made the city of Dubai their homes.

Most of the developed and developing countries across the globe including China residential properties provide a meager yields of around 3-4% and this coupled with the capital appreciation of the Dubai property market has encouraged the Chinese to look carefully towards Dubai.

Dubai Expatriates influence the real estate

The bulk of the population in Dubai comprises of expatriates who have their homes, offices, businesses in this golden city of opportunities. As days roll by the Chinese expat community is also increasing in size and also in terms of real estate presence as the Chinese community picks up commercial and residential real estate here.

Being a global city Dubai does have the power to attract literally everyone from any corner of the globe and this factor makes its local real estate a very exciting one for investors especially the Chinese who have made huge amounts of money in the recent years and the world has opened its doors for Chinese products. The Chinese are also one of the topmost buying communities in the UK and the US real estate markets.

Even a small Chinese investor could buy a one-bedroom apartment in Dubai for 1.5 million yuan (HK$1.82 million) and get a return of around 150,000 yuan rental income a year and sensing this big chance, Chinese property buyers are thronging in Dubai. The main reason is such opportunities do not exist in China at all especially after the China stock market took a major hit and plunged southwards recently. The Chinese also have money that has to be invested as it lying idle is simply wasting its potential.

Dubai's giant tourism industry, guest friendly environment, easy business policy and of course the  upcoming 2020 World Expo are all majorly contributing to making it a very real estate friendly destination for the global property investor.

Dubai Developers wake up to the Chinese Investor Alarm

Juwai.com, one of the biggest real estate portals that helps Chinese investors and property buyers purchase real estate overseas has recently reported a spurt in activity from the Chinese population in terms of showing interest in Dubai properties. The rise in the activity towards Middle East property investments has been a staggering 1200% compared to the same period last year.

These facts have not gone unnoticed and sensing this massive opportunity there are a host of real estate developers from Dubai including Damac Properties who are now specifically targeting the affluent in China to buy their Villas, posh apartments in Dubai. At a recent property expo in Guangzhou property exhibition in China, Damac showcased a luxury project Akoya by Damac featuring villas and golf courses generating a very good interest in the bargain.

The advertised rate of returns at least around 8% is achievable since Dubai's leasing market was stable and driven by demand from expatriates working in the Middle Eastern business markets as per property investment experts.

As the Chinese investors plan to dilute their risks and look at a broader spectrum of properties in their real estate portfolio, Dubai is benefitting the most and it’s only a matter of time that this activity will infuse a lot of energy back into the real estate atmosphere in Dubai and the Middle East in general.