Newest Trends: Chinese Overseas Real Estate Investing

[James Warren]

Chinese investing in Germany

According to China’s Commerce Ministry, Chinese direct investment into Germany amounted to USD 210 million in Q1, which is a year on year increase of 246 percent. Chinese have mostly been interested in offices, hotels, apartments and mixed developments. One reason why Chinese investors are becoming increasingly more interested to invest in Germany is due to the increased affordability of real estate projects and homes due to the depreciation of the Euro. Other reasons are because of the high quality of education available in the country and the high yield both commercial and residential properties have to offer. The real estate markets in Germany are also rising, resulting in additional capital appreciation for investors as well. Germany also offers stability due to its strict legal standards.

Chinese investing in Japan

Chinese investing in Japanese real estate are mainly attracted by a 22 year low yen and potential capital appreciation which will result from the 2020 Tokyo Olympic games like it previously has for the Beijing Olympics in 2008. Currently most individual investors from China purchase properties in Japan which are in the range of USD 160’000 to 320’000. Unlike Hong Kong or Singapore where available properties are limited, there are plenty of investment properties available in Japan.

Chinese investing in Dubai

Over the past 2 years Chinese have invested USD 353 million into Dubai's property markets. The Dubai real estate markets are both affordable and provide high yields for Chinese investors, even after the recent devaluation of the Yuan towards the US dollar. Cities such asBeijing, Shanghai, Guangzhou and Shenzhen are three times more expensive than Dubai. So far there are around 4200 Chinese companies that operate in Dubai and nearly 10 percent of it's residents are Chinese.