The UAE’s luxury real estate market is experiencing a dramatic surge in interest from Chinese buyers, with Dubai and Abu Dhabi emerging as the region’s top contenders for high-net-worth international investors. According to global real estate brokerage Juwai IQI, inquiries from Chinese buyers for UAE properties soared by 125% quarter-on-quarter in Q1 2025, highlighting a clear pivot toward the Gulf nation amid ongoing economic shifts and tightening investment restrictions in other markets.

Why Chinese Investors Are Eyeing the UAE

Once fixated on Western markets like Canada, Australia, and the UK, Chinese investors are now turning their attention to the UAE for several compelling reasons:

• Stable political environment
• No property tax
• Residency incentives
• Booming luxury sector
• Resilient economy despite global uncertainty

As capital outflows from mainland China and Hong Kong diversify, the UAE’s evolving luxury real estate landscape is becoming a magnet for investment. The cities of Dubai and Abu Dhabi, each offering distinct advantages, are now actively vying for dominance in this growing segment.

Dubai: A Trusted Market with Proven Appeal

Dubai remains the top choice for Chinese investors, with four out of every five inquiries focused on the city, according to Juwai IQI. Its long-standing global brand, investor-friendly policies, and track record of premium developments make it a well-understood and trusted market for international buyers.

Dubai also continues to break records:

• 14% of all Dubai property sales in Q1 2025 came from Chinese buyers, up from 13% a year ago.
• Sales of homes over AED 10 million (~$2.7 million) skyrocketed from just 467 in 2020 to 4,670 in 2024, according to Savills.
• In Q1 2025, 111 ultra-luxury transactions (homes over $10 million) were recorded, totaling $1.9 billion, making Dubai the global leader in this segment.

“Dubai’s prime residential market continues to attract high-net-worth individuals seeking space, privacy, and lifestyle excellence,” said Andrew Cummings of Savills Middle East.

From branded residences to beachfront villas in areas like Palm Jumeirah and Dubai Hills, the emirate’s appeal remains unmatched, for now.

Abu Dhabi: The Rising Contender with High Growth Potential

Though traditionally less known to international buyers, Abu Dhabi is quickly gaining ground thanks to its relative value, capital appreciation potential, and growing reputation for cultural sophistication. Since opening its property market to foreign investors in 2019, Abu Dhabi has seen steady growth in premium real estate activity.

Some key indicators of its momentum:

• Seven out of the top 10 areas with the highest property price growth in the UAE are in Abu Dhabi (Bloom Holding).
• The city saw a 125% increase in foreign investment in 2024, exceeding $2 billion in real estate purchases.
• Hong Kong’s Gaw Capital recently invested over $150 million in a luxury residential development on Saadiyat Island, the capital’s cultural hub and home to the Louvre Abu Dhabi.
• Gross apartment yields average around 7.2%, making it a lucrative option for income-focused investors.

“Abu Dhabi may be lesser known for now, but its potential is immense,” noted Juwai IQI co-founder Kashif Ansari. “It’s a city positioned to rival Dubai in international property investment within the next few years.”

Outlook: Geopolitics and the UAE’s Strategic Position

Despite recent geopolitical tensions in the region, the UAE continues to be viewed as a neutral safe haven. “The UAE has friends on all sides and is a haven that attracts investment, even in times of conflict,” Ansari added.

Its status as the Middle East’s most competitive economy, according to the International Institute for Management Development, reinforces confidence in long-term real estate investments.

Final Thoughts

With both cities accelerating development and capturing global attention, Chinese investors are now playing a central role in shaping the future of UAE’s luxury housing market. Whether it’s Dubai’s brand power or Abu Dhabi’s value proposition, the competition between the two is pushing standards higher, and offering exciting opportunities for international buyers.

As demand continues to grow, now may be the ideal time for discerning investors to explore what each emirate has to offer.