Dubai property is currently 14% less expensive for an Indian buyer than it was in 2015.

Dubai: Buying property in Dubai is still relatively inexpensive for an investor from India or the United Kingdom, compared to what they would have paid in 2015. This is because Dubai house prices have fallen from their 2015 peak — and partly because these foreign investors are benefiting from currency swings.

According to a new update from the London consultancy Knight Frank, buyers from the United Kingdom would find a home in Dubai 19% cheaper today than in 2015, as would those from India (by about 14%) and euro-denominated countries (32.3%), “which is why buyer groups from these locations are so active in the market.”

“It’s still early days, but as the global economy recovers, some of these currency discounts are already showing indications of stabilizing, if not reversing,” said Faisal Durrani, Partner – Head of Middle East Research at Knight Frank.

In 2020, currency volatility was high, with the dollar gaining and losing value. Given its link to the US dollar, the dirham followed a similar path. Any indication of a price or currency shift “will undoubtedly raise the stakes for individuals who have been waiting on the sidelines for the ideal time to invest,” says Durrani.

The current sales trend in Dubai’s property market shows transaction flow at its highest level since the summer of 2014 when the market was bolstered by news that the city had won the bid to host the Expo. With the Expo only two months and a few days away, the market cycle is once again on the rise.

“We are seeing a modest but consistent increase in transacted values,” Durrani added. “The confidence instilled in the economy by the government’s amazing reaction to the pandemic has percolated throughout the economy – purchasers feel surer about life and are committing to house purchases in growing numbers.”

“Not only that but larger properties – villas – are witnessing the greatest comeback, with prices currently around 17% lower than the previous market peak six years ago.”