US and Iran nuclear deal boosts Dubai property market

7 Days | August 6, 2015

A growing number of American and Iranian investors are showing interest in buying property in Dubai following the historic US-Iran nuclear deal signed last month, real estate agents have said.

iStock_000064356481_LargeSeveral upmarket property firms say they have received inquiries from Americans and Iranians since the deal was signed in July between Iran and the P5+1 group of world powers.

For Iranians, the lifting of sanctions will make it easier to invest in other countries, while for Americans the deal makes the region appear to be “more secure”, one agent said. In the nuclear deal, world powers agreed to lift sanctions against Iran if the country drops any plans of building a nuclear weapon in its enrichment programme.

The 100-page agreement relates to Iran’s enrichment of uranium, which is used in both civilian and military nuclear projects. Estate agents said villa districts including Emirates Hills and The Palm are proving be popular with Iranian families, while Americans were looking at upmarket apartments.

Tim Boswell, CEO of Ocean View Real Estate, said that people want to relocate to Dubai because the emirate is like the “Switzerland of the region”. He said his firm is already about to close a deal with an Iranian client who reached out to the company shortly after the historic negotiations.

Boswell said: “Another area we are getting a lot of interest from is America. There a lot of companies in America that would like to be based in Dubai and do business with Iran because Dubai is like Switzerland – it’s very neutral.

“It’s common sense for all of the big brands to do business with Iran from Dubai.” Ian Kirkby, sales director at Lux Habitat Real Estate, said that Iranian interest in Dubai is now picking up.

“In the last 10 days I’ve had three new inquiries from Iranians,” he said. Real estate agent Amit Bhatia, who works for Homes4Life, said that since the deal, the firm gets three to four calls each week from Americans who are looking to rent in Dubai.

“The Americans feel more secure now,” Bhatia said. He said many Europeans are also looking to relocate to take advantage of the emirate’s ‘strategic location’ and launch import and export businesses with Iran.

Iran is the fourth largest foreign trade partner in terms of non-oil trade, Emirates news agency WAM reported in June, totalling to $17 billion (Dhs62.4 billion) worth of trade between the two countries in 2014.

The US Secretary of State, John Kerry, held a meeting with the GCC foreign ministers in Qatar on Monday to discuss the Iran deal. The meeting was attended by the UAE Foreign Minister, HH Sheikh Abdullah bin Zayed Al Nahyan.

The leaders discussed ways of furthering GCC-US relations and areas of mutual interest.

Posted on August 6, 2015 in Uncategorized

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