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.
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