The real estate sector is set for surge in growth given the continuously-improving UAE-China relations, with an increase in tourism, trade and investments from Chinese nationals.
- While the two countries have had strong trade and cultural ties for the past decades, the transformational impact was the issuance of visa on arrivals for Chinese visitors to the country
- There has been an increase in the number of Chinese expatriate residents in the UAE, now at over 200,000, with over 50 community organisations
- It is important to understand Chinese investors and what appeals to them
The strong UAE-China relations, underpinned by 35 years of diplomatic relations between the two nations, have evolved as a strong catalyst for the UAE’s – particularly Dubai’s – real estate sector.
While the two countries have had strong trade and cultural ties for the past decades, the transformational impact was the issuance of visa on arrivals for Chinese visitors to the country. This opened floodgates with the number of Chinese visitors to the country increasingly exponentially in the past years.
According to reports by the tourism authorities of the UAE and China, more than 1.1 million Chinese tourists visited the UAE in 2018, and their numbers continue to grow, led by over 150 commercial flights every week connecting various cities in China.
The interest in the UAE has also led to the increase in the number of Chinese expatriate residents in the UAE, now at over 200,000, with over 50 community organisations. The UAE’s appeal to the Chinese is further underlined by the nation’s strategic role in Chinese President Xi Jinping’s Belt & Road Initiative.
With more trade and bilateral cooperation agreements signed during the recent visit of His Highness Sheikh Mohammed bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the Armed Forces, the UAE-China ties are indeed poised for growth. This builds on the raft of partnerships announced during the visit of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai to China earlier this year, as well as the visit of President Xi Jinping to the UAE.
All these are reflected in an increase in demand for real estate from Chinese investors, especially the high net worth individuals, who find in the UAE a safe investment destination that assures strong return and rental yields. For Chinese investors, the presence of world-class educational institutions and modern healthcare centres in the UAE are also incentives to work, live and leisure in the country.
As more developers turn their focus on attracting Chinese investors, it is important to understand the Chinese investors and what appeals to them. Essential homework must be done in terms of market research and as I had pointed out earlier, it is important to prepare the organsiation to serve these new customers by having Chinese speaking professionals and collaterals provided in Chinese languages.
China presents a strong opportunity for the UAE’s property sector and by showcasing the value add that their projects will deliver – such as proximity to leisure and retail attractions and the Expo 2020 Dubai site – and the amenities provided, they can carve a strong success story and a platform for sustained growth.
By: Cecilia Reinaldo
Source: AME Info
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