UAE realtors bet big on Chinese overseas investors despite competition

UAE realtors bet big on Chinese overseas investors despite competition

Although Chinese investments in the UAE real estate sector have accelerated slower than anticipated due to competition from other markets, the Gulf nation remains upbeat about attracting buyers from Asia's biggest economy thanks to the size of the investment purse and a spike in inquiries.

According to an Ernst & Young report, in the first quarter of 2023, China's overall direct investment (ODI) was $40.5 billion, a significant year-on-year (YoY) increase of 18 percent. Of the total deal value worldwide, 26 percent amounting to $918 million, was cornered by the real estate, hospitality, and construction sectors, recording an increase of 191 percent (YoY).

"With the steady economic development of China in the first quarter and the promotion of high-level opening-up, the momentum of China outbound investment is expected to further increase," the report noted.

Since 2019, Chinese higher-income households have amassed $886 billion of excess household savings during the pandemic, observed Juwai IQI Co-Founder and Group CEO Kashif Ansari.

With the travel restrictions being eased and many smaller cities back home struggling with weak developers and slow economic growth, he noted that the cashed-up Chinese are back to investing overseas, including in the UAE.

Citing industry data, Ansari noted that the Chinese spent $6.1 billion