Dubai, UAE – A falling UAE dirham, pegged to the weakening US dollar, is opening new doors for international real estate investors in Dubai. Buyers from the UK, Europe, and India are saving significantly on property purchases, purely due to exchange rate fluctuations, making Dubai’s thriving property market even more attractive in 2025.
According to Espace Real Estate, international investors are saving millions of dirhams thanks to favorable currency exchange rates. A British investor purchasing a Dh59 million villa in Palm Jumeirah would have needed over £13.2 million in January 2025, but now pays just £12 million — a £1.18 million (Dh5.86 million) saving, without any price reduction.
“In simple terms, for many international investors — especially from Europe and the UK — Dubai property has just become significantly more affordable,” said John Lyons, Managing Director of Espace Real Estate.
Stronger Currencies, Bigger Opportunities
The euro has gained nearly 10% against the dirham since January. A property worth Dh1 million would now cost about €239,200 instead of €265,800, saving buyers €26,600 (Dh111,500). Indian and British investors are also enjoying similar benefits, especially in the mid and luxury segments.
According to Farooq Syed, CEO of Springfield Properties, the market is seeing more interest in branded residences, ready-to-move-in homes, and prime communities as global currencies appreciate.
“Currency-driven affordability is giving global investors more reason to invest in Dubai,” Syed added.
UK Sellers Turning to Dubai
Interestingly, many UK homeowners are now selling properties back home to invest in Dubai, citing stronger buying power and Dubai’s lucrative returns.
“There’s a notable shift — many UK clients are no longer leasing homes back home while investing here. They’re selling UK properties to invest directly in Dubai,” Lyons noted.
Since January 2025, the dirham has dropped nearly 9% against the pound and euro. While that may seem modest, it has a significant impact on investor sentiment and buyer behavior. Experts suggest that while real estate pricing adjusts slowly, currency gaps often prompt immediate market activity.
At CityNest Realty, we are committed to helping global investors make the most of market shifts in Dubai’s real estate landscape. Whether you’re from India, the UK, or Europe, our team provides expert guidance in navigating Dubai’s residential, commercial, and investment property opportunities.
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How much can British buyers save now?
A British investor purchasing a Dh59 million property could save over £1.18 million due to favorable exchange rates, without any price drop in the property.
Which currencies have appreciated the most?
The euro has appreciated nearly 10% against the dirham since January 2025, while the pound and Indian rupee have also gained.
Are people really selling homes in the UK to buy in Dubai?
Yes, a growing number of UK citizens are selling their homes to invest in Dubai due to favorable currency conditions and strong real estate returns.
Which types of properties are in demand?
Ready-to-move-in units, branded residences, and properties in well-connected communities are especially popular among international investors.
