Dubai developers eye China to boost realty investments

Dubai - Dubai Property Show opens in HK, expects huge turnout

Dubai's premiere real-estate exhibition, Dubai Property Show, opened its doors to the Chinese investors for the first time at the Hong Kong Convention and Exhibition Centre on Thursday.
The exhibition was inaugurated by Ahmed Naser Alkhaja, Consul-General of United Arab Emirates to Hong Kong. Organised by Sumansa Exhibitions in partnership with Government of Dubai's Land Department, the show will run until tomorrow.
Expected to be visited by around 3,000 potential buyers, entry is free on all the three days of the show that will also host a number of seminars on local Dubai legislation, finance and regulations regarding property, besides other topics, that will serve as a guideline to first-time buyers.
Majida Ali Rashid, assistant director general and head of Investment Management & Promotion Center, the investment arm of Dubai Land Department said: "Dubai Land Department is always keen on promoting real estate projects launched by major real estate companies in Dubai, where it comes in translation of our vision to position Dubai as the world's premier real estate destination and a byword for innovation, trust and happiness. In this sense, our commitment to major companies operating in Dubai's real estate market call for our agreement with the organiser of the exhibition to ensure the success of this experience and promote Dubai real estate in many parts around the world."
For the first time, Chinese investors will get the opportunity to explore Dubai realty closely and enjoy a direct contact with developers, instead of a third-part intervention. Visitors will get to mingle with the who's who of the emirate's real-estate - developers whose iconic projects have put Dubai on the world map as a key investment destination. Exhibitors include eminent names such as Falconcity of Wonders, Nakheel, Damac Properties, Al Marjan Island, Jumeirah Golf Estates, Taktical Realty Group, Seal Real Estate Registration Agent, Driven Properties (to represent Emaar Properties and other prominent developers), SPF Realty Real Estate Broker, Trafalgar Properties among others.
Many wealthy Chinese find Dubai attractive partly because they believe they can achieve returns of as much as 30 per cent annually - better than Hong Kong, Shanghai and Beijing, where real estate markets are cooling.
In 2020, Dubai will host World Expo; a six-month trade fair that analysts forecast will boost the emirate's economy and increase real estate prices. In the past few years, Chinese have gradually climbed the investor graph in Dubai in many sectors with more than 4000 Chinese companies operating in the UAE. Chinese buyers have been playing a bigger role in Dubai real estate investment as well, both through direct investment in completed units and buildings and through financing and construction of projects.
Additionally, the Chinese population in Dubai has grown by 53 per cent in the last five years from 150,000 to approx 230,000. This increase in population will translate into larger demand for real estate assets alongside investments pouring into Dubai as Chinese realise that cities like Beijing, Shanghai, Guangzhou and Shenzhen are three times more expensive than Dubai. Another driver of Chinese interest in Dubai is the increasing number of Chinese studying in the country, with the number of students from the country up by 170 per cent over the past five years.
Sultan Al Suwaidi, partner, Sumansa Exhibitions, the organisers of the event said: "Chinese find investment in Dubai real-estate far more lucrative because it's three times cheaper than property in their top cities, and offers more profitable returns such as high rental yields in the range of seven per cent to 10 per cent, than property investments in markets such as Hong Kong or London. Given the huge market for Chinese products globally, Dubai also serves as practical platform for gateway to the West, hence the call for commercial property as well. We have the prime example of the sprawling, commercially successful Dragon Mart and the residential International City where Chinese nationals have made their presence felt."
- business@khaleejtimes.com

• Dubai