As a strategic consultant, I don't just talk about property; I talk about money. One of the most overlooked benefits of the Dubai market is the stability of the UAE Dirham (AED). The AED is pegged to the US Dollar at a rate of 3.67. This means when you invest in Dubai, you are essentially holding an asset backed by the world’s reserve currency.
The Reality of Depreciation
Let’s look at the cold, hard numbers. If you are an investor in India and you compare the INR to the AED between 2015 and 2022, you will see a shocking truth. The conversion rate went from roughly 16 AED to 24 AED. That means 70% of your money depreciated just by keeping it in your home country.
You could make a 10% profit in your local market, but if your currency drops by 15% against the dollar, you have actually lost wealth. In Dubai, your currency is stable, you get capital appreciation, and you get rental returns.
The Inflation Shield
Inflation in many parts of the world is running at 14% to 18%. In Dubai, the government keeps inflation controlled, usually below 2%. This means the purchasing power of your 1 million AED remains intact over time. When you buy property here, you are not just buying bricks and mortar; you are buying an insurance policy against the economic instability of other nations.
The Bricks Play
While nations debate joining the BRICS alliance, the UAE is already ahead of the game, maintaining strong alliances while keeping the currency anchored to the dollar. This makes the AED effectively "American Dollars with a picture of the Shaikhs". It is the safest way to park your wealth for the next 10 to 20 years.
