By Staff writer
Nuclear deal, if signed in June, seen as paving the way for Iranian investors to return to UAE property market
Potential investors from Iran have already started to make enquiries about making acquisitions in Dubai’s real estate, according to market sources.
Iran and world powers - US, Russia, China, France, United Kingdom and Germany - reached a framework nuclear deal at the weekend which should pave the way for an end to years of crippling sanctions on the country.
If confirmed in a final agreement by a June 30 deadline, the nuclear deal could encourage more property investment throughout the region from Iranian buyers.
Already, investors from Iran have contacted UAE real estate companies, according to a report in Gulf News.
“In the last 48 hours, we have been taking calls from Iranian prospects who have sounded out the possibility on exposures in locations, such as the Downtown and for mid-tier properties elsewhere in Dubai’s freehold areas,” Juwaad Beg, CEO of Al Madina Al Raeda Real Estate told Gulf News.
“These are definitely early days, but if the sanctions are lifted in full, Dubai’s real estate will be a clear and immediate winner from Iranian fund flow into the UAE,” he added.
Beg said the Iranian rial’s current weakness against the dollar will not put investors off.
“These investors don’t care … they have been cut off from the enough investment/asset options for way too long under the sanctions regime. They are good to go the moment these are lifted,” he said.
Luke Hexter of Luxhabitat told the newspaper that while there have been Iranian buyers in the recent years, the nuclear deal would pave the way for a lot more, particularly in Dubai.
“Even before the sanctions decision, there were a few Iranian buyers in the market over the recent past, in an on-off sort of way. But once the deal comes through in full, we do expect to see a filtering in of interest in quite a marked way.
“Historically, Iranian buyers, especially high net worth ones, have shown a preference for Dubai Marina, while Emirates Hills has been another. They also had a faint smattering of interest for the Palm,” he said.
I wonder why Iranians would not be interested to invest in their own country as the lifting of sanctions would bring a lot of new economic activity and hence real estate would benefit in their home country. Moreover, at the time of sanctions, it makes more sense to invest outside Iran compared to an era when there are no sanctions. I think and I may be wrong here that more money will flow inside the country compared to outside flow. This is just my opinion
would't Iranian investors want to benefit from the boom in Iran, and put there money there?
That's what I would do if I was from a country that will have a huge influx of opportunities....
It is quite difficult to move money from and to Iran, so there is a significant amount of cash parked in the region. Perhaps we will see quite a drain of money in the UAE, once the sanctions are lifted.
On paper no- but the lack of freedom in Iran offsets that. All things being equal you would expect greater domestic investment but demand for places like Dubai and Turkey will still be strong with the upper echelons.
yes i agree with Junaid Khan.
In troubled times they took the money out of their country through various means. However, if the deal goes through and its very likely it will, then the funds will flow back to their own country as it is safer than taking the money out of their own country