According to recent data, British investment in Dubai homes surged 62 per cent year-over-year in the second quarter of 2025, making UK residents the emirate’s top foreign property buyers for the first time since 2023, overtaking Indian nationals.
The dirham, which is pegged to the US dollar, has weakened approximately 8 per cent against the pound since January, effectively giving British buyers a significant discount when entering the UAE property market.
This currency advantage has prompted several major UAE developers to establish sales offices in London to capitalise on the growing interest from British investors.
Binghatti and Danube have recently opened London offices, joining established UAE developers like Aldar, Damac, and Sobha.
Danube Chairman Rizwan Sajan said the currency shift was important, telling Reuters: “The currency makes a big difference.”
This sentiment was echoed by Binghatti CEO Muhammad Binghatti, who confirmed seeing more British investors enter Dubai as the dirham weakened.
The weakening of the dollar, and consequently the dirham, has been attributed to US President Donald Trump’s sweeping tariffs.
This has created an unexpected advantage for Emirati property developers looking to attract foreign investment.
Property agents have noted a trend of wealthy individuals leaving London due to higher taxes, with Dubai emerging as one of the top destinations alongside Monaco, Italy, and Switzerland, according to senior London-based agents at CBRE and Knight Frank.
UAE developers are implementing various strategies to attract British buyers. Binghatti is offering flexible payment plans and special pricing to UK investors, while Damac has partnered with Chelsea soccer club to launch branded residences in Dubai that specifically appeal to British buyers.
The push to target British investors comes as UAE developers face concerns about potential oversupply in the domestic market.
After a period of soaring prices, some experts are predicting a downturn in the Dubai property market.
Fitch has forecast a potential 15 per cent contraction in Dubai property prices through late 2025 and into 2026, signalling that the current boom may not be sustainable in the long term.
Some UAE developers are looking beyond sales and establishing development operations in the UK.
Damac, Aldar, and Modon have all launched development arms for building properties in the UK through subsidiaries or joint ventures, with the most recent launch occurring in January 2025.
This diversification strategy indicates that UAE developers are increasingly looking overseas as the local market becomes more challenging, with London serving both as a sales hub and a new development frontier.
