Damac Properties inks deal with Qfang to expand operations in China

The deal will see better marketing of Damac’s projects to Chinese investors

22 Nov 2015

Dubai-based developer Damac Properties has inked a deal with China-based real estate and financial services firm Qfang to expand its operations in Southern China, the company said.

Under the deal, Damac’s real estate projects will be marketed in Chinese cities.

Qfang has 1,200 outlets in 30 Chinese cities and employs over 30,000 staff. It also services the United States, Japan and Malaysia. It was unclear whether the company would market Damac’s projects in these countries too.

“This cooperation is a natural continuation of our business operation's expansion in China that represents a very important market for us where sophisticated investors are looking for attractive lucrative deals within the real estate sector," said Damac Properties’ managing director Ziad El Chaar.

"Based on the recent statistics issued by the Dubai Land Department, Chinese investments in the emirate's real estate sector reached CNY 2.24bn (Dhs 1.3bn) last year, which constitutes a more than 300 per cent rise compared to 2013 as stated by The Economic Voice newspaper. And the numbers announced last month by the same department reveal that the total value of real estate investments from Chinese individuals in Dubai during the first eight months of 2015, reached CNY 2.07 bn (Dhs 1.1bn).”

Traditionally Gulf Arabs have been top investors in Dubai’s real estate. But the recent slowdown in property prices and dampening economic growth have prompted local investors to diversify their funds from the region.

Local developers, instead, are actively promoting their freehold properties in other markets such as India and Europe.

Earlier this year, Dubai developer Nakheel announced a joint venture with German brokerage firm Engel & Völkers to significantly expand its marketing reach globally and locally.

Another developer Sobha opened sales offices this year in London, Singapore, Riyadh, Doha and Kuwait city.