After injecting billions of dollars into cities like London, New York, and Sydney, Chinese investors are looking at Dubai as a new alternative. The influx of money has the ability to reshape the financial crisis in Dubai, as investors see a phenomenal opportunity in Dubai real-estate. Chinese investors and developers weren’t very active before 2009, when Dubai was hit by a real-estate crisis. But they now play an increasingly important role in the market, according to brokers, developers and analysts.
Demand from individual buyers is helping launch new developments and fueling Dubai’s residential recovery, while Chinese contractors and banks are revitalizing high-profile projects that stalled in the previous boom. Many wealthy Chinese are seizing this as an opportunity to diversify. The projected returns of “as much as 30% annually” is better than they could receive from Chinese cities because the prices are so much lower than in China, according to a resident of the United Arab Emirates originally from Shanghai who is interested in purchasing a villa.