The real estate market in Dubai has been one of the most exciting addresses for international investors for years. There is currently a particularly favorable opportunity for buyers from German-speaking countries: the Swiss franc and the euro are currently exceptionally strong against the dirham (AED), the national currency of the United Arab Emirates. For you as a buyer, this means that you can now get significantly more property for the same money - be it in the form of larger living space, higher-quality fittings or a better location.
Exchange rates have changed significantly in recent years: While the euro was still at around AED 3.80 (as of 2023) and the Swiss franc at around AED 4.25 (as of 2023), they are currently quoted at AED 4.35 (EUR/AED, September 2025) and AED 4.67 (CHF/AED, September 2025) respectively. This development provides investors from Switzerland, Germany or Austria with significantly increased purchasing power.
Particularly important: the AED is firmly pegged to the US dollar (1 USD = 3.6725 AED). This means that fluctuations in the exchange rate are primarily influenced by the development of the euro and Swiss franc against the US dollar. Investors who invest in AED therefore automatically benefit from the current strong exchange rate of their home currency.
The interest rate environment also plays a major role: as the currency is pegged to the US dollar, interest rates and key interest rate decisions in the UAE are strongly based on the US Federal Reserve's guidelines. In recent months, there has been a slight easing or at least stability in US interest rates and banks in Dubai are increasingly offering mortgage terms below 4%.
Traditionally, the real estate market in Dubai has been dominated by cash payments, particularly in the luxury segment. However, the proportion of financed purchases is now rising steadily: more and more banks are offering mortgages with attractive conditions and end users are also increasingly turning to financing. This gives buyers additional flexibility - especially in an environment in which the strong franc and euro are increasing their purchasing power anyway.