UAE: Weaker Rupee, High Inflation Erode Indian, Pakistani Investors' Purchasing Power For Property

Indian and Pakistani investors have been among the top property buyers in Dubai, but their purchasing power to buy real estate in the UAE is much weaker when compared to investors from the US, Europe, and GCC countries due to the weakness of the rupee against the UAE dirham, according to a new study released on Monday.

Published by Stamn Real Estate Development, the Foreign Buyer Power Index revealed that despite Indians being the top property buyers in Dubai, the rupee's weakness has eroded their purchasing power, placing the country at 18th position.

The Indian rupee recently hit an all-time low, hitting 24 against the UAE dirham.

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However, Indian nationals living and working in the UAE and high-net-worth individual Indians are still significant investors in UAE real estate to take advantage of a growing market.

Despite plunging purchasing power due primarily to a weak rupee, India's high net worth individuals and UAE-based expatriates are still some of the most significant investors in UAE real estate.

Though the Pakistani rupee has been steady of late, but high inflation in the South Asian country has weakened Pakistani investors' buying power for the UAE real estate.

Pakistani and Indian residents account for more than half of the UAE's population and are also among the biggest investors also.

The index assesses several factors such as currency exchange rates, affordability (compared to the home country), wealth, average incomes, and capital mobility.

The Foreign Buyer Power Index revealed that the British, American, and Kuwaiti investors have the strongest purchasing power to buy property in the UAE. Investors from Saudi Arabia, Qatar, France, Germany, the Netherlands, Canada, and Australia make up the top 10 list, who have the strongest purchasing power for UAE real estate.

The British investors are in a strong position to buy property in Dubai and the UAE because the pound has strengthened substantially against the UAE dirham since January 2025. The pound was trading at 4.47 against Emirati currency in January and crossed 5 in July and then again in September, reaching a nearly 14-year high. The stronger pound is giving British investors more power to invest in Dubai and UAE real estate.

This is one of the factors that makes the British investors among the top buyers in the local market.

“British investors, particularly those exchanging pounds for dirhams, are currently in a very strong position to purchase UAE real estate. The wealth of US and GCC investors also grants them strong purchasing power despite a weaker dollar,” said Zheng Jian, CEO of Stamn.

Similarly, European investors are also benefiting from the currency fluctuation as the euro has risen from 3.76 in January 2025 to 4.35 in September against the Emirati dirham.

While Indian investors have ranked 18th, and Pakistani buyers have been listed 22nd by the Index.

“Across our developments, we are seeing different kinds of demand amongst foreign buyer audiences. We are seeing a trend where families are not only looking to move investment capital but also to live and work in Dubai. In the Dubai Islands, we are seeing strong interest amongst European audiences, attracted to island living and the investment potential of 'the next Palm Jumeirah'. Meanwhile, in the up-and-coming Jumeirah Garden City, we are seeing savvy Russian and CIS buyers looking for affordable family units,” said Jian.

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