(Yicai) Sept. 29 -- Chinese investors are shifting their focus to the Middle East, and the United Arab Emirates in particular, as a prime real estate destination amid a sluggish domestic market, experts said at a recent industry forum.

Investment in overseas real estate markets should focus on regional hubs, Ding Zuyu, chairman of market research firm China Real Estate Information Corp., said at the 2025 Middle East Real Estate Investment Summit Forum on Sept. 23.

“First you need to look at the region’s economic growth prospects,” Ding said at the forum, which was co-hosted by CRIC, the Asia Bankers Club and Aldar Properties, a leading developer in the UAE. “Second, you look at the supply and demand in the housing market, especially price trends. Based on these two criteria, the UAE is clearly leading the pack in the Middle East.”

Cities in mature markets, such as New York, London and Singapore, have always been key destinations for property investment, Ding said. The UAE, as the major player in the Middle East, has core cities such as Dubai and Abu Dhabi that serve as financial and economic centers for the whole region, not just for the country.

Abu Dhabi’s real estate transaction value surged 39 percent in the first half from a year ago to top USD14 billion, according to the report “Trends in the UAE’s Residential Market for the First Half of 2025” that was released at the forum. And residential property sales soared 30 percent to AED21.8 billion (USD5.9 billion).

Dubai logged a 22 percent jump in transactions over the period to 98,726, while the transaction value surged 40 percent to AED326.9 billion (USD88.9 billion). High-end rental yields hit 5.3 percent last year, ranking second globally.

At the macro level, the UAE’s non-oil economy accounted for 75.5 percent of the country’s gross domestic product in 2024. The government has also rolled out measures such as the Golden Visa and permits for wholly foreign-owned enterprises. The Abu Dhabi International Financial Center has attracted nearly 3,000 companies.

Chinese buyers are becoming more active. Purchases from Chinese clients have quadrupled in the past three years, with sales reaching nearly USD450 million in 2024, according to data from Abu Dhabi-based Aldar. Meanwhile, the proportion of the firm’s overseas buyers jumped to 78 percent last year from 21 percent in 2021.

Aldar is creating an integrated lifestyle experience that combines culture, tourism, healthcare, education and high-end housing, said Chief Executive Officer Jonathan Emery. This both meets the needs of families looking to settle down and it provides stable cash flow for investors.

“More and more Chinese investors are showing a strong interest in Abu Dhabi,” he said. “As the firm invests more resources here and builds brand awareness, we believe that opportunities will only continue to grow.”

“The main things investors care about are stable economic growth, rapid expansion and a steady real estate market with rising prices,” Ding said. “However, differences in laws and regulations, market transparency, and geopolitical risks need careful consideration.”

Editor: Kim Taylor