Rising US Dollar Strengthening Real Estate Market In Dubai

DUBAI: Rising US dollar combined with world class infrastructure and high quality of life are strengthening real estate market in Dubai which is competing with other global cities such as Paris and London, according to a repo.

Real estate consultancy Knight Frank in the report said that USD 1 million could buy 146 sq m of prime property in Dubai, whereas the same area would cost USD 3.5 million in Paris and USD 5.8 million in London.

Hafeez Abdullah, Chairman of the H Holding Enterprise, which controls diversified investments in the region including real estate, quoted these figures while referring to how strong US dollar, vis-a-vis other currencies, was having a positive impact on Dubai realty market in the long run.

"The strong dollar is impacting the volumes of real estate transactions from countries with sinking currencies against USD which demonstrates the global attraction to the Emirate's property sector, especially from European, American, Russian and Asian investors," Abdullah said.

He said that the rising US dollar will filter out speculators as the market becomes more end-user driven, than speculative investor driven.
Commenting on the effect of rising USD value against other currencies, Abdullah said: "The plummeting international currencies against US dollar means less speculative investors from the countries with falling currencies, such as Europe, Russia and China. This factor is further aided by Dubai's more mature regulatory measures, such as the ones introduced by the Dubai Land Department."
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