The United Arab Emirates is rapidly becoming a primary destination for real estate investment from China, driven by global economic shifts and strategic alignments with the Belt and Road Initiative. Industry leaders report a significant increase in capital flowing into the UAE's property markets, particularly in Abu Dhabi and Dubai, with bilateral trade between the two nations approaching $100 billion.
At a recent forum in Shanghai, data revealed that Chinese investment in UAE real estate has already surpassed $700 million this year. This trend is supported by the UAE's stable economic growth, population increase, and business-friendly policies, positioning it as a key hub for international investors.
Key Takeaways
- The UAE has emerged as a top real estate investment location for Chinese individuals and institutions involved in the Belt and Road Initiative.
- Bilateral trade between the UAE and China is nearing $100 billion, fostering stronger economic ties.
- In the first half of 2025, Abu Dhabi's residential transactions grew 30% year-on-year, while Dubai's transaction value increased by 40%.
- Jonathan Emery, CEO of Aldar Development, stated that purchases by Chinese customers have nearly tripled in the last three years.
- Experts advise investors to align with national strategies, such as coordinating China's Belt and Road Initiative with regional plans like Saudi Arabia's Vision 2030.
Investment Shifts Toward Middle East Hubs
Amid global economic uncertainty, investors are seeking stable and high-growth markets. The 2025 Middle East Property Investment Forum, held in Shanghai and hosted by China Real Estate Information Corp (CRIC), highlighted this shift. Experts at the event identified the UAE as a leading prospect for both individual and institutional capital, especially as China's domestic real estate sector undergoes a transition.
Ding Zuyu, chairman of CRIC, emphasized the importance of focusing on regional centers for overseas property investment. “In the Middle East, Dubai and Abu Dhabi stand out as the key destinations,” he said. Ding compared these cities to established global hubs like New York and London, noting that their roles extend beyond national centers to being financial and economic pillars for the entire region.
Belt and Road Initiative Connection
The forum's focus aligns with China's 2025 government work report, which called for advancing the Belt and Road Initiative (BRI). This initiative aims to improve connectivity and cooperation across Asia, Europe, and Africa. The UAE's strategic location and pro-investment environment make it a natural gateway for BRI-related real estate activities.
Jonathan Emery, CEO of Aldar Development, a major UAE developer, confirmed the rising interest. “There is a growing appetite from investors in China for Abu Dhabi. We see that opportunity increasing as we invest more time here and build brand awareness,” Emery stated during the forum.
Abu Dhabi Market Shows Strong Growth
Abu Dhabi's real estate market is demonstrating significant momentum, backed by strong demographic and economic indicators. According to a new report from CRIC, the emirate's population reached 4.14 million in 2024, making it the most populous in the UAE.
Transaction Volume and Prices Rise
The first half of 2025 saw residential transactions in Abu Dhabi total 21.85 billion dirhams ($5.95 billion), a 30% increase compared to the same period last year. This surge in activity was accompanied by a notable rise in property values.
The average home price in the capital climbed by 17% to reach 3.3 million dirhams per unit. This data points to a robust and expanding market that is attracting significant investor attention.
Aldar's International Sales Surge
Aldar Development's sales figures illustrate the international appeal of the UAE market. In 2024, overseas and expatriate buyers were responsible for 78% of the company's UAE sales. This is a dramatic increase from 2021, when such buyers accounted for only 21% of sales.
Emery highlighted the specific contribution from Chinese investors.
“A major part of this growth is coming from China. Over the past three years, purchases by our Chinese customers have increased almost three-fold, already surpassing $690 million this year with the final quarter still to come.”
He added that the combined investment from Chinese individuals and institutions has reached $700 million so far this year, and Aldar aims to expand this partnership.
Dubai Remains a Global Real Estate Leader
Dubai continues to solidify its position as one of the world's most dynamic real estate markets. In the first half of 2025, the city recorded 98,726 property transactions, marking a 22% year-on-year increase.
The total value of these transactions saw an even more impressive jump, rising 40% to 326.9 billion dirhams. This performance underscores the high level of confidence investors have in Dubai's property sector.
Attractive Returns for Luxury Properties
Dubai's luxury segment is particularly appealing. In 2024, the rental yield for luxury properties reached 5.3%, ranking second globally. This combination of capital appreciation and strong rental income makes it a magnet for international investors seeking stable returns.
UAE Market Strengths
CRIC's 2025 H1 UAE Residential Market Trends Report identifies three core pillars supporting the nation's property market:
- Steady Economic Growth: Diversification away from oil has created a resilient and growing economy.
- Strong Demographic Momentum: A growing population, including a large expatriate community, fuels housing demand.
- Favorable Policy Support: Government initiatives like long-term visas and 100% foreign business ownership encourage investment.
Strategic Advice for Overseas Expansion
While the opportunities are significant, experts at the Shanghai forum also offered advice for navigating overseas investments. Li Lan, general manager of Shanghai Construction Group's overseas business management division, shared insights from the company's experience with 53 projects across 26 BRI countries.
“Among the 152 countries involved in the Belt and Road Initiative, I view Southeast Asia and the emerging Middle East markets most favorably,” Li said. She outlined key considerations for Chinese companies venturing abroad.
Aligning with National Visions
Li stressed the importance of strategic alignment. “Such ventures need to align with national strategies, ensuring that policies and development plans between the two countries are compatible,” she explained. For instance, she recommended coordinating BRI projects with Saudi Arabia's Vision 2030 to create a solid foundation for long-term growth.
Luo Changyuan, a professor at Fudan University's School of Economics, also pointed to synergies between China and Arab nations. He noted that China's leadership in electric vehicles, solar power, and lithium batteries meets the energy transition needs of the region. Furthermore, he anticipates that the digital economy and artificial intelligence will foster deeper cooperation.
Despite the positive outlook, experts cautioned investors to monitor economic trends and remain aware of geopolitical risks in the wider Middle East. A coordinated approach that brings together investors, developers, and suppliers is seen as crucial for success.
