Iran war makes Dubai luxury properties cheaper:Prices fall 25% in just 3 weeks

British reality show star Sam Gowland bought a luxury villa in Dubai a few months ago. The villa cost around ₹19 crore, which increased further after renovation. Sam recently put the property on the market for sale, but during this time the war between US and Iran began. Due to increasing tension in the Middle East, the situation is such that now no buyer can be found for the villa. He tried to sell the house at a lower price too, but it was of no use. Such difficulties are not limited to Sam alone. Since the war, luxury property prices in Dubai have fallen by an average of 25% and the number of property deals has also halved compared to before. In early March, property deals were 31% lower compared to last year, while this decline is 51% compared to February. For instance, buyers had already left the market before prices fell. Dubai was considered a tax-free and politically stable economy until now. But due to Iranian attacks, this image appears to be cracking. Goldman Sachs experts believe that the city’s real estate market has been largely ‘sentiment-driven’. As soon as news of missile and drone attacks came, people became fearful and buyers of expensive properties disappeared. Due to the lack of luxury property buyers, shares of large real estate developers like Emaar have seen heavy declines. Many property owners who want to sell their properties have also reduced prices, yet buyers are not being found. Luxury property prices down 25%, transactions see massive 51% decline In areas like Dubai’s Lanai Island, Arabian Ranches and Palm Jumeirah Islands, which are considered the first choice of billionaires worldwide, a 20% cut in property prices has become common. Investors are ready to sell their expensive villas, penthouses and luxury apartments at discounts of 2-4 crore rupees. This makes it clear that Dubai’s real estate market has currently reached a stagnant state, where the bigger problem than prices is the lack of buyers. For investors, this period is filled with uncertainty, because while their capital exists on paper, converting it to cash has become difficult. Until tensions in the region decrease, this slowdown in the market may continue.