Latest news with #EspaceRealEstate
Khaleej Times
2 days ago
- Business
- Khaleej Times
Dubai: Dirham drop helps British, European, Indian property investors save millions
Dubai's booming real estate market has become even more attractive to foreign investors, as the UAE dirham has weakened against major international currencies such as the British pound, euro, and Indian rupee. This currency shift has significantly reduced property acquisition costs for buyers from the UK, Europe, and India — potentially saving them millions of dirhams compared to earlier this year. According to John Lyons, managing director at Espace Real Estate, the depreciation of the US dollar, to which the UAE dirham is pegged, has played a key role in making Dubai real estate more affordable for international buyers. 'In simple terms, for many international investors — especially from Europe and the UK — Dubai property has just become significantly more affordable,' Lyons explained. 'We recently listed a Dh59-million villa in Palm Jumeirah. Back in January, a British buyer would have needed just over £13.2 million to purchase it. Today, that same villa would cost around £12 million — a saving of more than £1.18 million (Dh5.86 million) purely due to exchange rate differences, without any reduction in the asking price.' Stronger currencies drive investment Since January 2025, the British pound has strengthened from 4.47 to nearly 5 against the dirham, while the euro has risen from 3.76 to 4.22. This appreciation means investors can get more dirhams for their home currency, increasing their purchasing power in the Dubai market. 'The euro has appreciated nearly 10 per cent against the dirham since the start of the year. A Dh1-million property that would have cost around €265,800 in January now costs approximately €239,200 — saving the buyer €26,600 (about Dh111,500) without any change in the local price. British investors have also benefited, though the pound's movement has been more modest,' said Farooq Syed, CEO of Springfield Properties. Syed noted that the strengthened foreign currencies are fuelling renewed buying momentum in Dubai, particularly in the prime and upper mid-market segments, where transaction volumes have recently surged. Selling in UK to buy in Dubai The favourable currency environment is even prompting some UK residents to sell their properties back home to invest in Dubai instead. 'There's a clear uptick in cross-border activity from regions where currency appreciation has enhanced purchasing power — particularly from the UK, eurozone, India, and Pakistan,' Syed said. 'Interest from Russian buyers also remains consistent. These investors are focusing on well-connected communities, branded residences, and ready-to-move-in units.' Lyons added that his firm has seen a rise in UK buyers since January, with a shift in behaviour. 'We're seeing more clients who initially planned to buy in Dubai while continuing to lease their homes in the UK now deciding to sell their UK properties outright,' he said. 'This shift is driven by two key factors: an improved UK property market and the fact that British buyers now get nearly nine per cent more value when purchasing in Dubai due to the stronger pound. 'Real estate markets don't adjust overnight, but the currency gap is real. Historically, property prices tend to catch up. Since January 2025, the US dollar – and by extension, the dirham – has dropped by just under nine per cent against both the euro and the pound. That might sound abstract, but the impact on buyer behavior is very real,' he added.
Arabian Business
27-04-2025
- Business
- Arabian Business
Dubai real estate: Property transactions rise 23% in Q1 2025 despite global uncertainty
Dubai's residential real estate market demonstrated continued strength in the first quarter of 2025, with transaction volumes increasing 23 per cent year-on-year to 42,274 sales across both secondary and off-plan markets, according to a new report from Espace Real Estate. The quarter saw robust activity despite early signs of market stabilisation, with transaction volumes declining 10 per cent quarter-on-quarter amid broader global economic uncertainty. 'The Dubai residential real estate market continues to demonstrate remarkable resilience and growth in Q1 2025. Transaction volumes remained robust, buoyed by sustained demand for both off-plan and ready properties,' John Lyons, Managing Director at Espace Real Estate said. Luxury Dubai homes see 101% price surge as market grows Off-plan transactions accounted for 59 per cent of all residential deals, continuing a trend observed throughout 2024, the report said. The report notes a shift in investor sentiment away from speculative buying towards a more measured pace that could support long-term market health. The luxury segment saw particularly strong performance, with properties priced above AED 20 million recording the largest increase in transaction activity both year-on-year and quarter-on-quarter in the secondary market. Villa and townhouse communities showed significant price appreciation, with 19 of the 20 tracked communities recording increases, averaging 23 per cent. Emirates Hills led with a 101 per cent price increase, followed by Jumeirah Islands at 52 per cent. Apartment communities also saw price growth across all 11 tracked areas, though at a more moderate average of 10 per cent, with the Views area recording the highest increase at 17 per cent. Quarter-on-quarter figures in the secondary market recorded an increase in transaction volume, indicating a continued shift among tenants toward homeownership. This trend is supported by an 8 per cent decline in villa/townhouse rental contracts and a 17 per cent decrease in apartment rental contracts compared to Q1 2024. Dubai rental market contracts as more residents buy homes Despite fewer rental transactions, rental prices continued to climb, with villa rentals increasing by an average of 19 per cent year-on-year. Emirates Hills and Tilal Al Ghaf saw the highest increases at 33 per cent and 47 per cent respectively. Apartment rentals rose by an average of 11 per cent, with City Walk recording the highest increase at 19 per cent. Buyer activity reflects Dubai's growing international appeal, with increased geographic diversification in foreign investment. 'At Espace Real Estate, buyer activity continues to show that Dubai remains highly appealing to a global audience, with a diverse mix of buyer nationalities. While Western European countries continue to feature prominently, we are now observing increased geographic diversification, with growing interest from Eastern Europe. This shift underscores Dubai's widening international appeal' Lyons said. The off-plan market saw 7,008 completed units in Q1 2025, representing a 15 per cent decrease compared to the same period last year. As market conditions evolve, the report suggests the current moderation may ultimately contribute to more sustainable long-term growth for Dubai's property sector.
