The Dubai developer building what’s set to be the world’s tallest residential tower is betting on an influx of rich buyers fleeing currency instability in Turkey and Egypt to help drive demand.
Binghatti Properties is planning around 12,000 homes across the city over the next two years, Muhammad Binghatti, the chairman of the privately-owned developer, said in an interview. That’s over and above the 9,000 homes it’s already building, and the US$1 billion it’s set to spend on construction in the next 18 months.
“Many of our investors want to put some of their wealth outside their countries to protect themselves against currency fluctuations,” Binghatti said. “They’ve stood by and watched the capital gains in Dubai over the past few years, which they missed out on.”
The firm has seen a 20 per cent increase in the number of Turkish and Egyptian buyers from last year, making them among the top international buyers of Binghatti properties, he said.
The Turkish lira has surrendered 95 per cent of its value since 2012 driven by unorthodox monetary policies. The Egyptian pound has plunged 68 per cent since early 2022 as policymakers resorted to four devaluations to combat an economic crisis.
Dubai’s real estate market has traditionally been dominated by Indian, British and European buyers. Russians shot up the rankings in the aftermath of Kremlin’s invasion of Ukraine, but that trend is fading.