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Emirati property developers have intensified efforts to attract British investors to Dubai, with the pound's strength against the dirham making property purchases significantly cheaper. The dollar-pegged dirham, hit by U.S. tariffs, has lost about 8% against sterling since January, effectively giving UK buyers a discount. Developers including Binghatti, Danube, Aldar and Damac have opened sales offices in London, introduced flexible payment options and even launched branded projects to target this demand. British buyers have since overtaken Indians as Dubai's top foreign investors.
Emirati real estate developers have begun stepping up campaigns to lure British investors to the United Arab Emirates, as the weaker dirham-pegged to the U.S. dollar and weighed down by U.S. President Donald Trump's tariffs-has made property acquisitions cheaper for those purchasing in pounds. Advertisement
Their renewed focus on British investors, through new sales offices in London, coincides with concerns of oversupply in Dubai's local property market, despite its strong performance over the past year. Developers such as Binghatti and Danube have recently set up London offices, joining Aldar, Damac and Sobha in targeting UK-based buyers.
Danube Chairman Rizwan Sajan remarked that currency movements were making a clear difference for British investors, while Binghatti's chief executive Muhammad Binghatti noted a visible rise in UK participation in Dubai's property sector as the dirham weakened.
The dirham has dropped about 8% against the pound since January, effectively creating a discount for UK buyers. Some British property agents have also reported anecdotal evidence of wealthy clients relocating from London due to rising taxes, with Dubai emerging as one of the preferred destinations alongside Monaco, Italy and Switzerland.
Developers have been tailoring their offerings to entice UK buyers. Binghatti is providing flexible payment structures and exclusive pricing, while Damac has partnered with Chelsea Football Club to launch branded residences. According to UAE brokerage Betterhomes, British investment in Dubai homes rose 62% year-on-year in the second quarter, placing UK residents at the top of foreign buyer rankings for the first time since 2023.
The shift has made Emirati real estate a surprising beneficiary of U.S. tariffs, with capital flowing into property and tourism as the UAE seeks to diversify beyond oil revenues. However, concerns remain over sustainability. In May, Fitch forecast a possible 15% fall in Dubai property prices through late 2025 and into 2026, signalling potential challenges.
Alongside targeting British buyers, several UAE developers have expanded into the UK market. Aldar, Damac and Modon have launched development subsidiaries and joint ventures in Britain, while Danube and Binghatti have indicated they are considering similar moves despite the weaker dirham curbing their buying power. Aldar's UK arm, London Square, has already secured 15 sites and launched six projects since late 2023.
At the same time, falling UK property values have been drawing wealthy Emirati investors. Knight Frank reported that Emiratis accounted for 3% of London investors this year, up sharply from 0.6% a year ago.
While British buyers have surged to become Dubai's leading foreign investors, concerns of oversupply and forecasts of declining prices continue to shadow the market. Developers are simultaneously diversifying into the UK, reflecting a dual strategy of capturing British demand in Dubai while establishing a stronger presence abroad.
Source - Reuters
5th Jun, 2025
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