Chinese investors remain interested in prchasing Dubai properties despite domestic market slowdown.
The fluctuating performance of the yuan against the U.S. dollar will unlikely dampen the interests of Chinese investors for attractive Dubai real estate opportunities, states The National. According to Wang Liao, owner of Atomic Properties which has offices in International City and Jumeirah Lakes Towers, the property prices in the Emirates are "very reasonable" for Chinese investors compared to their home markets. In Hongkong alone, property prices are five times higher than other real estate markets. Wang added that top cities such as Beijing, Shanghai, Guangzhou and Shenzhen are "three times more expensive than Dubai."
The National report further mentioned that the Dubai property market is also expensive for Chinese buyers, given that Dubai's local currency, the UAE dirham, is pegged to the U.S. Dollar. This month, the yuan fell to nearly 3 percent after the People's Bank of China enforced a series of devaluations. Despite this fact, the Atomic Properties' executive still considers Dubai a "young market that offered a high-growth investment environment for buyers." Wang even stated that Dubai's real estate market offers greater returns as compared to more mature property markets such as London and Hongkong.
Wang added, "Property ownership in Dubai also offered greater returns on residential housing than Chinese investors could achieve at home. An extension of nine months would also allow users to adjust to a potential changed basket composition should the executive board decide to include the RMB [the yuan]." This means that the International Monetary Fund (IMF) will continue to observe what will happen to China and its market over the next nine months, states The National.
Meanwhile, one of Dubai's leading luxury real estate developers, DAMAC Properties, has been visiting China to support the free investors' seminars led by representatives from 5i5j and B.A. Consulting, according to a statement posted at Business Wire. The two firms are some of China's leading real estate brokers and business consulting companies. The aim of the investors' seminars is to provide Chinese buyers more information about Dubai's property market.
The Business Wire report mentioned the group's seminar schedules, wherein two will be held on August 29 and August 30, in Shanghai and Hangzhou, respectively. Meanwhile, the DAMAC and China group already concluded two free investors' sessions last August 22 in Beijing and August 23 in Tianjin.
