UAE’s real estate developers are trying to attract British investors. Properties have become much more affordable in the country after President Donald Trump imposed tariffs. The Dirham and the US dollar have become weaker compared to the pound.
Sensing an opportunity, Emirates-based property players are now pushing to launch new London offices to target British investors locally after raising concerns about project oversupply and too few buyers. The UAE real estate market has been among the best-performing in the world.
Referring to the weak dirham and strong pound, Danube Chairman Rizwan Sajan told Reuters that “the currency makes a big difference.” On top of this, Binghatti CEO Muhammad Binghatti stated that he had seen more British investors enter Dubai, as the dirham weakened. The main reason for causing the dollar and, consequently, the dirham to decline is the wide-ranging American tariffs. The dirham has dropped by around 8% against the pound since January 2025, giving British investors a significant discount to enter Dubai’s real estate market.
Some real estate agents in the UAE also said that some wealthy people are leaving London because of the higher taxes. Senior London-based agents at CBRE and Knight Frank told Reuters that Dubai has emerged as one of the top destinations for people departing London, along with wealthy countries like Monaco, Italy, and Switzerland.
Binghatti is attempting to attract British buyers by providing flexible payment plans and special pricing to United Kingdom-based investors. The company has partnered with Premier League giant Chelsea to introduce branded homes in Dubai, which the company thinks will appeal to British buyers.
British investment in Dubai real estate increased 62% year-over-year in Q2 of 2025 after a period of decline, according to the UAE brokerage Betterhomes. The brokerage also noted that for the first time since 2023, British citizens surpassed Indian nationals as the top foreign buyers of real estate in the UAE.
Emirati property has emerged as an unexpected winner from the American tariffs, as investment flows into less-impacted emerging markets. Traditionally reliant on oil revenues that swell when the dollar is strong, the UAE is now leveraging sectors like property and tourism to draw in capital.
After a run of soaring prices, some experts, however, predict a downturn in the Dubai market. In May 2025, Fitch forecast a potential 15% contraction in Dubai property prices through late 2025 and into 2026. Some also see London becoming another medium for property businesses to diversify operations as well as a sales hub, in another sign that UAE developers are turning overseas as the local market becomes tougher.
Damac, Aldar and Modon have all launched development arms for building properties in the United Kingdom through subsidiaries or joint ventures — most recently in January 2025. Aldar’s UK-based subsidiary, London Square, has secured 15 new land sites and launched six developments since late 2023, according to chief executive Talal Al Dhiyebi.
According to Knight Frank, UAE developers are using falling UK property prices to try to attract wealthy Emiratis, who now make up 3% of London investors, a fivefold rise from just 0.6% a year earlier.