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How Currency Fluctuations Are Driving Foreign Demand in Dubai Real Estate?

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Dubai’s real estate market continues to attract global attention, and the latest currency trends are offering international investors yet another compelling reason to buy.

Why?

With the UAE dirham pegged to the US dollar, recent depreciation in the greenback has made Dubai property significantly more affordable for buyers from countries with strengthening currencies, including the UK, Europe, and India. This shift has translated into millions of dirhams in savings for foreign investors, without a single dirham drop in asking prices.

Speaking on the trend to Khaleej Times, John Lyons, our Managing Director at Espace Real Estate, highlighted the substantial advantage for overseas buyers.

“In simple terms, for many international investors, especially those from the UK and Europe,  Dubai property has just become significantly more affordable,” he said.

To illustrate, John pointed to a AED 59 million villa recently listed on Palm Jumeirah. “Back in January, a British buyer would’ve needed just over £13.2 million to purchase it. Today, that same villa would cost around £12 million, that’s a saving of more than £1.18 million (Dh5.86 million), purely due to exchange rate differences,” he explained.

This currency-driven discount is helping an increase in activity among foreign investors, with many choosing to act now before markets re-correct.

John shared that Espace has seen a noticeable uptick in enquiries and transactions from overseas buyers since the beginning of the year. “We’re seeing more clients who initially planned to buy in Dubai while continuing to lease their homes abroad now deciding to sell their overseas properties altogether. That shift is driven by two key factors: stronger foreign currencies, and growing confidence in Dubai’s long-term value.”

As of June 2025, the British pound has strengthened from 4.47 to nearly 5 against the dirham, and the euro has jumped from 3.76 to 4.22. This means investors are now getting significantly more dirhams for their money, increasing purchasing power across the board.

“Historically, real estate markets take time to respond to currency fluctuations,” John added. “But right now, the gap between local price tags and foreign exchange value is very real and for savvy investors, it’s presenting a time-sensitive opportunity.”

For those considering investing in Dubai property, Espace Real Estate recommends looking at well-established, highly connected communities, including areas like Palm Jumeirah, Emirates Living, and Jumeirah Golf Estates, where demand remains strong and long-term capital appreciation is expected.

With Dubai continuing to rank among the world’s most dynamic property markets, and with currency trends working in buyers’ favour, the message is clear: international investors have a rare window to make their move.

Thinking of making the move?

You can browse our properties for sale! You can read John’s story on Khaleej Times here.

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