Chinese Buyers Drive UAE Property Boom as Dubai and Abu Dhabi Contend for Luxury Market Share

Dubai and Abu Dhabi are vying, and Chinese investors are at the center of it.

According to new data from global property network Juwai IQI, inquiries from Chinese buyers for real estate in the UAE surged by an impressive 125% in the first quarter of 2025 compared to the previous quarter. Both Dubai and Abu Dhabi are contending to attract this influx of capital in the region, each with a unique value proposition tailored to the luxury property segments.

Chinese Buyers Drive UAE Property Boom as Dubai and Abu Dhabi Contend for Luxury Market Share

Dubai Still Leads the game, But Abu Dhabi is Catching Up very quickly.

While Dubai remains the top destination for international real estate investors, receiving 04 out of every 05 inquiries from China while, Abu Dhabi is beginning to capture more attention of the international real estate buyers. The capital city offers a compelling combination of price value, infrastructure growth, and exclusive residential zones, especially in areas like Saadiyat Island and more.

“Dubai has spent years positioning itself as a global investment destination,” said Kashif Ansari, CEO of Juwai IQI. “But Abu Dhabi is now gaining traction among foreign buyers, and over time, it could become just as competitive.”

One major appeal: value. Seven of the top 10 areas with the highest property price growth in the UAE are now in Abu Dhabi, according to developer Bloom Holding.

Luxury Sales Soar in Dubai

Luxury real estate in Dubai is still experiencing historic highs. Real Estate Properties priced above AED 10 million ($2.7 million) have skyrocketed in demand, with over 4,670 units sold in the year 2024 alone, up tenfold from the year 2020. Chinese real estate buyers accounted for 14% of these sales, up from 13% the previous year.

In Q1 2025, Dubai recorded 111 ultra-prime luxury residential deals over $10 million, worth a combined $1.9 billion, more than any other global city, according to Knight Frank.

“The consistent demand we’re seeing for branded residences and spacious villas reflects the lifestyle appeal of Dubai’s high-end real estate,” said Andrew Cummings, Head of Residential at Savills Middle East.

Abu Dhabi’s Rise in International Market: Investors Take Note

Abu Dhabi, once quieter in the international spotlight, now is quickly making bold moves when it comes to luxury real estate investments. With 352 listings of $1M+ homes, surpassing Dubai’s 343—investors are beginning to see the capital's untapped potential. Hong Kong-based group Gaw Capital recently invested over $150 million in a residential building in the Saadiyat Island district, marking one of many significant international acquisitions.

Residential investment zones in Abu Dhabi are also seeing double-digit growth in both prices and rents. Gross apartment yields are averaging 7.2%, according to Cushman & Wakefield Core, and suburban villas are drawing increasing attention.

Why Chinese Investors Are Flocking to the UAE

Chinese interest in UAE real estate isn’t just about luxury—it’s about stability, returns, and long-term growth. The UAE’s neutral geopolitical position, visa access flexibility, and investor-friendly policies to make it a safe place for investors, especially during global economic uncertainty.