Will 2024 be the year Chinese invest in luxury Dubai real estate?

Investors from China are expected to contribute to the growth of the luxury real estate market in the UAE next year, according to architectural firm Estilo Architects.

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By Estilo Architects

Estilo Architects is a company that provides customized and comprehensive turnkey solutions for the residential sector, architecture, interior design and building development services, as well as home renovation.

According to Emaar Properties, Chinese investments in its projects have doubled to constitute 7% of its total investments, and the reason is due to the easing of travel restrictions imposed due to the pandemic and the slowdown of the Chinese economy.

Investors are likely to continue flocking to the emirate in 2024 as luxury home prices remain attractive compared to prices in London, New York and other global real estate markets.

One million dollars buys 33 square meters in New York or 34 square meters in London, but it can buy a house of 105 square meters in Dubai.


Boom in branded real estate

Branded properties are likely to continue their upward trajectory in 2024 as well.

In 2022, branded apartments accounted for a fifth of the value of apartment sales in Dubai, and the appetite for branded homes will only increase in 2023 .

He recently paid $55.3 million for a five-bedroom Baccarat-branded apartment in Dubai.

In February, a five-bedroom apartment in Bulgari sold for $43.6 million, and Estilo Architects broke its own record this year for the highest price for a real estate unit on Palm Jumeirah at $41 million.

There are already 48 branded projects in Dubai, and according to Savills, Dubai has the most plans for branded buildings in the development pipeline of any market in the EMEA region until 2030.

This year, the real estate market also supported other initiatives such as allowing 100% direct foreign ownership in more than 1,000 industrial and commercial sectors, and the introduction of multiple-entry tourist visas.

In addition, the UAE has maintained its position and reputation as a safe haven for investment amid global uncertainty, which will continue to push investors to purchase their primary and secondary homes in the country .

According to Standard & Poor’s, the UAE’s economy is expected to grow by 4% in 2024, driven by the non-oil sector. The strong economy, the continuous influx of foreign investments, and high population levels are all factors that will contribute to the growth of the luxury real estate sector in 2024.


Luxury real estate market in 2023

Dubai made headlines this year thanks to the performance of its luxury real estate market, with sales in Dubai reaching $1.6 billion in the third quarter of this year, with sales of luxury homes priced more than $10 million reaching 277 homes, surpassing the numbers in New York and Hong Kong. Kong and London, according to consulting firm Knight Frank.


In its Global Cities Index for the second quarter of 2023, Knight Frank wrote that residential real estate prices in Dubai rose by 225% compared to the third quarter of 2020.

In addition, the report revealed that the city occupied first place in the second quarter of the year in terms of price increases for eight consecutive quarters, and the report stated that the emirate moved to second place in the third quarter of the year due to the slowdown in price growth from 11.6% in the second quarter to 0.7%. % in the third quarter.


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