At Espace Real Estate, we focus closely not only on local market dynamics but also to global financial trends that influence investor behavior in the market.
This week, our Managing Director, John Lyons, recently contributed an article to Gulf News highlighting one such trend that is quietly shaping the current Dubai real estate landscape, which is the weakening of the US dollar.
For international investors, particularly those based in the UK and across Europe, this currency shift presents a potentially valuable opportunity to invest in Dubai’s luxury property market.
Since the start of 2025, the US dollar has declined by approximately:
Because the UAE dirham is pegged to the US dollar, this depreciation has effectively made Dubai real estate more affordable for buyers transacting in stronger foreign currencies.
To give an example of the impact, a villa currently listed at AED 59 million on Palm Jumeirah would have required a UK buyer to convert over £13.2 million in January. Today, that same property costs approximately £12 million, resulting in a saving of £1.18 million, solely due to currency movement.
For euro-based investors, the discount is even more pronounced — nearly €1.8 million in savings.
Have we seen this pattern before in the Dubai real estate market?
This is not the first time currency fluctuations have had an impact on the Dubai real estate market. Between 2002 and 2008, the US dollar declined significantly against a global currency basket, during which time Dubai’s property market experienced strong growth.
Conversely, between 2014 and 2017, the dollar appreciated sharply, and Dubai’s property prices softened.
While exchange rates are just one of many factors influencing real estate performance, alongside interest rates, supply, investor confidence, and government policy, they can play a significant role in shaping buyer sentiment and timing.
Dubai’s fundamentals remain strong
What makes the current environment especially compelling is that these favourable currency conditions are coming in at a time of exceptional growth in Dubai’s real estate market.
The city continues to attract global interest, backed by a steady population growth, which is currently at 1,000 new residents daily, with ongoing infrastructure investment, and a maturing regulatory framework.
For international buyers already considering a purchase, current FX rates may represent a rare moment when both timing and value align.
Speak to an Espace expert
Espace Real Estate’s team of professionals is here to guide international buyers navigating this opportunity. If you’re based in the UK, Europe, or elsewhere, we can help you take full advantage of favorable currency trends while finding the right property to suit your investment goals.
Get in touch with us here.
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