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.

For many international investors — especially from Europe and the UK — Dubai property has become significantly more affordable.

For example, a villa priced at AED 59 million would have cost a British buyer just over £13.2 million in January. Today, the same property would cost around £12 million — a saving of more than £1.18 million (AED 5.86 million) purely due to exchange rate differences, without any reduction in the asking price.

The euro has appreciated nearly 10% against the dirham since the start of the year. A property priced at AED 1 million that would have cost around €265,800 in January now costs approximately €239,200 — saving the buyer €26,600 (about AED 111,500) with no change in the local price. British investors have also benefited, though the pound’s movement has been more modest.

Stronger foreign currencies are fueling increased interest and transaction volumes, particularly in prime and upper mid-market segments.

Some UK citizens are even selling their homes in the UK to invest in Dubai, attracted by the favorable exchange rate environment.

There’s been a noticeable increase in cross-border activity from regions where currency appreciation has boosted purchasing power — particularly from the UK, eurozone, India, and Pakistan. Interest from Russian buyers also remains consistent. These investors are focusing on well-connected communities, branded residences, and ready-to-move-in units.

Since the beginning of 2025, the US dollar – and by extension, the dirham – has dropped by just under 9% against both the euro and the pound. This currency gap is influencing buyer behavior, especially among those looking to shift capital from markets like the UK to Dubai.