Since the UAE dirham has depreciated in value relative to major international currencies like the British pound, euro, and Indian rupee, Dubai’s thriving real estate market has become even more alluring to foreign investors.
Compared to earlier this year, buyers from the UK, Europe, and India may have saved millions of dirhams on their real estate purchases thanks to this currency change.
The decline of the US dollar, which the UAE dirham is based on, has significantly contributed to the affordability of Dubai real estate for foreign purchasers, according to John Lyons, managing director at Espace Real Estate.
“In simple terms, for many international investors — especially from Europe and the UK — Dubai property has just become significantly more affordable,” Lyons explained.
“We recently listed a Dh59-million villa in Palm Jumeirah. Back in January, a British buyer would have needed just over £13.2 million to purchase it. Today, that same villa would cost around £12 million — a saving of more than £1.18 million (Dh5.86 million) purely due to exchange rate differences, without any reduction in the asking price.”
Stronger currencies drive investment
The decline of the US dollar, which the UAE dirham is based on, has significantly contributed to the affordability of Dubai real estate for foreign purchasers, according to John Lyons, managing director at Espace Real Estate.
“The euro has appreciated nearly 10 per cent against the dirham since the start of the year. A Dh1-million property that would have cost around €265,800 in January now costs approximately €239,200 — saving the buyer €26,600 (about Dh111,500) without any change in the local price. British investors have also benefited, though the pound’s movement has been more modest,” said Farooq Syed, CEO of Springfield Properties.
According to Syed, the renewed buying impetus in Dubai is being fueled by the strengthening foreign currencies, especially in the prime and upper mid-market segments where transaction volumes have lately increased.
Selling in UK to buy in Dubai
Some UK citizens are even selling their homes back home to invest in Dubai due to its excellent monetary climate.
“There’s a clear uptick in cross-border activity from regions where currency appreciation has enhanced purchasing power — particularly from the UK, eurozone, India, and Pakistan,” Syed said. “Interest from Russian buyers also remains consistent. These investors are focusing on well-connected communities, branded residences, and ready-to-move-in units.”
Lyons added that his firm has seen a rise in UK buyers since January, with a shift in behaviour.
“We’re seeing more clients who initially planned to buy in Dubai while continuing to lease their homes in the UK now deciding to sell their UK properties outright,” he said. “This shift is driven by two key factors: an improved UK property market and the fact that British buyers now get nearly nine per cent more value when purchasing in Dubai due to the stronger pound.
“Real estate markets don’t adjust overnight, but the currency gap is real. Historically, property prices tend to catch up. Since January 2025, the US dollar – and by extension, the dirham – has dropped by just under nine per cent against both the euro and the pound. That might sound abstract, but the impact on buyer behavior is very real,” he added.