In the last months important currency fluctuations happened. Brexit, European recession fears, trade tensions between China and the United States have been key factors. What potential opportunities do these fluctuations create for those who own property, or want to buy property?
Currency fluctuations and property investors can be friends. While Studying the evolution of property prices in Dubai, I assumed that any investor who bought in 2014 must be at a loss now. Wrong.
Indeed, MortgageFinder.ae explains that an investor who bought a property in 2013 for 4.3 million AED and sold today for 3.6 million AED could make a profit (source).
How? Well, thanks to the British Pound evolution against the dollar! Indeed, despite the price drop in AED, the investor could make a profit of GBP31,956.
| Buy / Sell price (AED) | Date | Sell/Buy currency | IFX Rate – AED / GBP | Amount in GBP |
| 4,300,000 | Aug-13 | Sell GBP/ Buy AED | 5.5862 | 769,754 |
| 3,600,000 | Aug-19 | Sell AED / Buy GBP | 4.4904 | 801,710 |
The opportunity
MortgageFinder.ae goes on explaining that “for those who already own property in the UAE and are considering expanding your property portfolio abroad then UK and European markets do present an opportunity at this time.”
Equity release, once you already reimbursed part of some property investments, can indeed be a great way to invest in other markets, taking advantage of currency fluctuations.