Dubai Seeks Chinese Buyers
Damac, one of Dubai’s most prominent developers, has been making approaches to the Chinese market, offering potential buyers in the far east a free holiday in the United Arab Emirates along with their property purchase.
The National newspaper reports that company and its Shenzhen-based partner Qfang, with which it signed a deal this month, has made the offer to Chinese investors from now until the end of January 2016. The offer gives potential Chinese buyers the chance to visit Dubai, giving a free flight ticket, hotel stay and visa.
Damac Properties has properties on its books with prices ranging from Dh1.8million to Dh36.8m. With a significant slump in Dubai’s property fortunes in 2015 the company is bolstering its market spread. This initiative in the Chinese market is aimed at tempting locals looking to diversify risk away from the Yuan Renminbi as China’s economy struggles.
Damac Properties claims that the Dubai real estate market can offer very lucrative returns for investors from China. Damac claims returns of between 7 and 8 per cent in a tax-free environment. Of course, if you are taxed in China or the UK, for instance, that is your tax base and you’ll pay the tax there instead.
Damac Properties has been making a concerted effort to sell the Dubai property market outside of its traditional buying strongholds. This is why it has been active promoting its product in China over the past few months.
The stronger dollar (to which the UAE Dirham is pegged) has made the market less affordable to buyers like the Russians and those from the Euro Zone, where Damac would have promoted its product previously. The company is now looking for new frontiers as it seeks to sell the huge product portfolio it is building up in a sluggish market.