The fluctuation of the pound price doubles the profits of Egyptians in Dubai real estate
A recent report by the global real estate consultancy, Knight Frank, stated that house prices in Dubai during the second quarter of 2021 rose at the fastest pace since the summer of 2014.
The report indicated that some nationalities have enjoyed a significant increase in the value of their homes as a result of the fluctuation of the currencies of their countries against the UAE dirham since the summer of 2015, led by Egyptian investors, as their investments witnessed an increase of 51.4%.
In detail, Partner - Head of Middle East Research at Knight Frank, Faisal Durrani, explained, “The momentum that started to emerge late last year in the Dubai real estate market has continued and we are now seeing a slow but steady upward trend in home values.
He added: “The generous government support that has been injected into all areas of the economy has paid off, with the government's effective response to the pandemic - buyers nowadays feel more confident in life and are committed to buying homes in increasing numbers. And not only that, the large homes - villas It is the one experiencing the biggest recovery.
He continued, “While average prices are still 26.3% lower than their previous highs, some groups of buyers have escaped the volatile market performance, with some nationalities enjoying a significant appreciation in the value of their homes as a result of their countries’ currencies fluctuating against the UAE dirham since the summer of The year 2015. Calculating the fluctuating value of currencies against the UAE dirham since the summer of 2015 reveals a completely different picture when it comes to investors who benefit from this financial phenomenon.”
Durrani added: “For example, Egyptian pound buyers have seen their investment rise by a staggering 51.4%, while Pakistani rupee buyers are currently enjoying a gain of over 12%. If we go back in time back to the strong days of 2007, Egyptian and Pakistani buyers would have been They have seen their investment increase in value by a staggering 200%. Meanwhile, European buyers will be looking forward to a 20.5% gain since 2007, while for British buyers it could be closer to 68%. The other side of the story is of course some of those who couldn't catching up with the real estate boom, the relative prices are more attractive today than they were in 2015.”
Sterling buyers will find a home in Dubai today 19% cheaper than in 2015, as will Indian buyers (-14%) and Euro holders (32.3%), which is why groups of buyers from these countries are active in the market.
Durrani added: “It is still too early to confirm, but with the global economy returning to full strength, some of these currency discounts are already showing signs of stabilization, or even a reversal, which will undoubtedly raise expectations for those who They were waiting on the sidelines until the right time to invest and catch opportunities.”
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