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Weak Dirham Fuels Surge in British Property Demand

Currency Shift Boosts Affordability

Dubai’s property market is attracting British buyers as the UAE dirham, pegged to the US dollar, has weakened by around 8% against the pound since January 2025. This shift effectively gives UK investors a discount on property purchases in Dubai.

Developers Target UK via London Offices

In response, several major developers—including Binghatti and Danube—have opened sales offices in London, joining Aldar, Damac, and Sobha in targeting British buyers.

Danube Chairman Rizwan Sajan highlighted:

“The currency makes a big difference.”

Binghatti CEO Muhammad Binghatti confirmed a noticeable rise in UK investment directly linked to the weaker dirham.

Trump Tariffs Undercut the Dollar and Dirham

The dollar—and with it the dirham—has been pressured by broad US tariffs under the Trump administration, creating unexpected advantages for foreign investors.

Incentives and Branding for UK Buyers

Developers are tailoring products to British clients:

  • Binghatti offers flexible payment plans and tailored pricing.
  • Damac has launched branded residences in partnership with Chelsea Football Club, appealing directly to UK investors.

UK Buyers Now Lead Foreign Investment

British investment in Dubai real estate surged 62% year-over-year in Q2 2025, making the UK the top foreign investor group and surpassing Indian buyers for the first time since 2023.

Market Risks and Diversification

While British demand is booming, analysts warn of oversupply risks. Fitch expects Dubai property prices could decline by up to 15% through late 2025 and into 2026.

To offset risks, UAE developers are expanding abroad. Aldar, Damac, and Modon have launched UK ventures. Aldar’s London Square has acquired 15 plots and launched six projects since late 2023. Danube and Binghatti are exploring similar moves. At the same time, falling UK property values are attracting Emirati investors to London, who now account for 3% of buyers, up from 0.6% a year ago.

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Dubai’s real estate market experienced a robust performance during the week of April 14–18, 2025, with total transactions reaching AED17.99 billion ($4.9 billion), according to the Dubai Land Department. Sales transactions led the market activity, amounting to AED13.52 billion ($3.7 billion) across 4,662 deals. Notable high-value sales included an apartment at The Alba Residences in Palm Jumeirah, which sold for AED61.3 million ($16.7 million), and another at Address Grand Downtown in the Burj
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