Dubai attracts more Chinese investors because of its falling home price. [Photo: weibo]

Falling home prices are said to be making Dubai a more attractive destination for Chinese investors.

Lisa Cui, managing director of Sara Real Estate, says Chinese buyers interested in Dubai's property sector have increased significantly in over the past year.

"Dubai, we can get 8 to 10 percent returns. That's much better (than what) we get from London, New York and Sydney. That makes big difference."

Sumeet Khubchandani, marketing manager with Indigo Properties, says falling prices are offering up an opportunity in what is now a buyer's market.

"Dubai prices have hit the 4-year low. And it's a good time to capitalize; I mean the rental returns are phenomenal. You are looking at 7,8,9 percent rental here."

Dubai's real estate sector has been volatile in the past few years.

Prices bottomed out after the 2008 global economic crisis hit, then began peaking again in 2013.

However, the latest stats from Standard &Poor's shows housing prices in Dubai fell by an average of 11.5 percent last year.

S&P says it expects that trend to continue through the remainder of this year.