Dubai’s booming real estate attracts Chinese investors

Dubai's no-tax regime and golden visas attract record-high property transactions.

Dubai's real estate market is experiencing a surge among Chinese investors, following a 35% increase in quarter-on-quarter in transaction volumes, hitting an all-time high of 35,100 units, according to Savills. Notably 63% of these units are currently under construction.

“Dubai has been one of the standout economies for real estate investment over the past few years, particularly post-COVID,” said Andrew Cummings, Head of Residential, Middle East, at Savills. “We've seen tremendous capital growth, with over 17% capital growth last year alone.” .

Several key factors contribute to Dubai's allure. The city's tax-free regime offers significant financial advantages for investors. This fiscal environment, combined with the introduction of the 10-year golden visa for property investors with investments exceeding half a million dollars, has bolstered the market’s attractiveness.

The surge in transactions is also driven by Dubai’s ambitious population growth strategy. The government aims to double the population from just over 3 million to 6 million by 2040. This goal has led to a record influx of high-net-worth individuals, with over 4,500 millionaires relocating to Dubai last year alone. 

“One of the things that’s propelled those are the visa reforms that have happened,” noted Cummings. The influx of new residents, many of whom are settling for the long term, has shifted the market dynamic from a transient to a more permanent population base.

Dubai's growth trajectory shows no signs of slowing down. The city’s GDP is forecasted to grow by over 4%, supported by substantial infrastructure investments like the $35 billion expansion of the new airport in the south of the city. 

“Dubai's growth story is really only getting started,” Cummings said. Although the market may not see the same frenetic capital increases of recent years, steady growth of 6-7% is anticipated, reflecting a sustained positive outlook.