Long-term political stability, clean and efficient government, low taxes and openness toward foreign cultures have been key reasons why the UAE and Dubai, in particular, have generally outperformed the rest of the Middle East and undergone a remarkably fast and thorough modernization in a few decades. However, the arrival of the pandemic took a toll on the advancement of the sector, with mandatory lockdowns across the globe and movement restrictions that led to a further strain on the industry.
With the world slowly opening up, the sector is now showing signs of recovery and foreign investors in particular are looking set to reclaim their spot on the UAE’s list of top property purchasers this year after they slipped out of the rankings during the Covid pandemic. The United Arab Emirates' real estate market saw a gainful year in 2022 despite a global slowdown, benefiting from a series of reforms and geopolitical events, including the Ukraine war, with some segments anticipated to lead growth rates globally in 2023.
The Ukrainian investor - influx welcomed foreign direct investment and boosted the UAE real estate market in 2022 above the global average and now the Chinese also want a piece of the pie. The return of Chinese investors gives hope that the market will still be strong in 2023. Chinese investors are particularly interested in Dubai's luxury property market, with many purchasing high-end apartments and villas in areas such as Downtown Dubai, Palm Jumeirah, and Dubai Marina. Additionally, Chinese investors have been investing in commercial real estate, such as office buildings and retail spaces. Overall, Chinese investment in Dubai real estate is expected to continue to grow in the coming years, as the UAE government continues to implement policies that attract foreign investment and promote economic growth.
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