Dubai: It is still not expensive for an investor from India or the UK to purchase a property in Dubai while comparing it to what they would have been spending on the same in 2015. That’s because Dubai home costs have decreased from their 2015 high – and also because these overseas investors are getting the advantage of currency fluctuations.
Purchasers from the UK would find a home in Dubai 19% cheaper today than in 2015, as would Indians (by about 14%) and those from euro-denominated countries (by a faltering 32.3% ), “which is why buyer groups from these locations are so active in the market,” as per the new update from the London consultancy Knight Frank.
“It’s still early days, but as the global economy revs back up to full steam, some of these currency discounts are already showing signs of stabilizing or even reversing,” said Faisal Durrani, Partner – Head of Middle East Research, Knight Frank.
Currency volatility had been intense in 2020, with the dollar acquiring and shedding value. The dirham traced a similar trajectory given the stake to the dollar. Any indication of cost or cash change “will no doubt up the ante for those who have been waiting on the sidelines for the right time to invest,” said Durrani.
The current sales trend in the Dubai property market shows a bargain stream at its best since the summer of 2014 when the market was floated by news of the city winning the eights to have the Expo. Presently, with the Expo just another two months and a couple of days away, the market cycle is again on the up.
“We are seeing a slow, but steady upward creep in transacted values,” said Durrani. “The confidence that has been injected into the economy by the government’s phenomenal response to the pandemic has percolated across the economy – buyers feel more confident about life and are committing to home purchases in increasing numbers.
“Not just that, it’s larger homes – villas – that are seeing the sharpest rebound, with prices now about 17 percent below the last market peak six years ago.”