Iran tops Dubai’s average investment list for 2015
Iran’s interest in Dubai’s real estate market is likely to grow even further in 2016/17, according to research from Core, UAE associate of Savills
In 2015, Iran was Dubai’s fourth largest expat nation by overall investment size and the first by average investment size, according to statistics released by the Dubai Land Department (DLD).
The country is likely to further increase its interest in Dubai’s real estate market in 2016/17, according to research conducted by Core, UAE associate of Savills.
Following the lifting of sanctions in early 2016, and last month’s elections, the property management consultancy predicts that Iran’s influence on the global economy – and in particular, the Middle East – will see significant growth during the coming year.
Commenting on the interest of Iranian investors in Dubai’s property market, David Godchaux, CEO of Core UAE, said: “Dubai, with its existing trade network with Iran and its position as a global logistics hub, can function as a doorstep for the world looking out to invest and service this developing nation.
“Given its geographical proximity, political stability, and quality real estate, Dubai has been a favourable destination for Iranian investors for both mortgage and foreign investments,” he noted.
With its $417bn (IRR12.6qn) economy, Iran is the second largest economy in the market in the Middle East following Saudi Arabia. Moody’s and the International Monetary Fund (IMF) project 5% growth in 2016/17, underpinned by the release of frozen overseas funds, the implementation of investment plans, and a recovery in the country’s oil production.
“With a surge in investor sentiment and a notable increase in enquiries from Iranian investors, these numbers are expected to go higher in the coming years,” added Godchaux, commenting on the DLD figures.
“That said, Iran’s key driver remains political; in particular whether it will continue to meet its obligations under the sanction agreement, and whether other countries will continue to agree that it has done so to keep it up on its path to progress,” he concluded.