Dubai’s property sector is witnessing an upward trajectory in demand, particularly from investors based in China and Hong Kong. This renewed interest is largely driven by the emirate’s robust economic performance, attractive investment policies, and the promise of high returns.
Chinese Buyer Interest Rises Sharply
Recent market insights reveal that Chinese interest in UAE real estate surged by 28% during Q1 2025, compared to the same period in 2024. This increase aligns with a broader pattern of international capital inflows, with investors from countries such as China, the United States, the United Kingdom, France, Kazakhstan, and Russia contributing to over $2 billion in real estate purchases in Abu Dhabi during 2024, a significant 125% rise from the previous year.
Dubai’s Residential Sector on the Rise
According to industry analysts, Chinese investors represented around 8% of total foreign investment in Dubai’s real estate market in 2024. This share is expected to grow further in 2025. Rising rents and sales prices by 16% and 18% respectively in 2024, have been spurred by strong expatriate demand and government initiatives such as the introduction of long-term visas and more relaxed property ownership laws.
Key Acquisition Signals Market Confidence
A prime example of growing Asian involvement is Gaw Capital’s purchase of a residential tower at Mamsha Gardens, located on Abu Dhabi’s Saadiyat Island. The Hong Kong-based investment firm acquired the asset for AED 586 million from Aldar Properties, marking its inaugural venture in the UAE. Aldar, Abu Dhabi’s leading property developer, disclosed that 87% of its Q1 2025 sales came from foreign investors, with Chinese and Hong Kong buyers contributing AED 1.3 billion during that period following AED 1.5 billion in 2024. This represents a staggering 30-fold increase since 2022.
Global Confidence in the UAE Property Market
Aldar’s CEO, Talal Al Dhiyebi, highlighted that the transaction underlines Abu Dhabi’s emerging status as a global real estate hub, bolstered by its economic resilience and premium asset offerings. Analysts have described the Gaw Capital deal as a benchmark investment that reinforces international confidence in the region’s long-term growth prospects.
Real estate experts have observed heightened activity from Chinese and Hong Kong investors targeting prime-grade assets, such as luxury residences, commercial offices, and logistics infrastructure. These investment categories provide stable income streams and are supported by Dubai’s transparent regulations and growing demand.
Luxury Segment and Strategic Vision
Luxury real estate continues to attract global interest. In the first quarter of 2025, the average transaction value for high-end properties in Dubai stood at $743,000. Chinese investors, among other foreign buyers, paid a premium, averaging $1.12 million per transaction.
Dubai’s strategic vision, including the Dubai Real Estate Strategy 2033, aims to raise transaction values by 70% and boost the homeownership rate to 33% by 2033. With the city’s population forecasted to reach 4 million by 2026, demand remains strong. Major projects like Emaar South and Jumeirah Lakes Towers are benefiting from large-scale infrastructure developments, including the expansion of Al Maktoum International Airport.
Market Outlook: Balancing Growth and Supply
Despite the current momentum, market analysts warn that the anticipated delivery of approximately 182,000 residential units by 2026 could moderate price growth if demand tapers. Moreover, regional geopolitical factors present additional variables. However, Dubai’s consistent reputation as a secure and low-tax jurisdiction continues to attract investors, especially from Asia.
High-profile visits by global leaders, including those from the United States and Hong Kong, reflect Dubai’s rising strategic relevance. As 2025 progresses, the role of Asian capital, particularly from China and Hong Kong, is expected to become increasingly central to Dubai’s property market. This positions the city to maintain its status as a top-tier destination for global real estate investment.
Source: https://www.khaleejtimes.com/business/chinese-hong-kong-investors-fuel-dubai-property-boom
