|By TAP Staff| According to an assessment of the post-sanctions situation for Iranians to invest in Dubai’s real estate, Dubai homes are 4.4 times more expensive compared to five years ago.
“This is simply a matter of economics,” Jesse Downs, managing director of Phidar Advisor, was quoted as saying. The rial will take time to appreciate and until that happens, Dubai property will be very expensive for Iranian buyers.”
Along with Indians and Pakistanis, Iranians have been among the largest buyers of homes in Dubai. The lifting of sanctions was thought to trigger a flood of investment from across the Gulf into Dubai real estate.
As Iran’s second-biggest trade partner since 2009, the UAE is well-positioned to help Iran increase its consumption of foreign goods, Phidar Advisory said in a report. However, sanctions relief would leave Iran less dependent on the UAE than it is now.
Sanctions against Iran probably will be lifted within the first three months of 2016, after the International Atomic Energy Agency has confirmed the nation has curtailed its nuclear work, diplomats said last month.
According to Downs, if Iran succeeds to control inflation, it could mean retention of capital within the country as well as flow of investment from abroad. If not, cash will pour out of the country, but much of that will bypass emerging markets. Iranian investors would gain access to the US and Europe where yields are higher compared with Dubai and volatility and geopolitical risk are lower, the report said.