Dubai Property Seen too Expensive to Get Iran Sanctions Bounce

Dubai homes are 4.4 times more expensive for Iranians using local currency than they were five years ago, meaning a lifting of sanctions against the Islamic republic would have little short-term effect on the emirate’s slumping real estate market, according to Phidar Advisory.

“This is simply a matter of economics,” Phidar Managing Director Jesse Downs said by phone Monday. “The rial will take time to appreciate and until that happens, Dubai property will be very expensive for Iranian buyers.”

Iranians have been among the largest buyers of homes in Dubai after Indians, Pakistanis and Britons, fueling speculation that lifting the sanctions would release a flood of investment in Dubai real estate. Home prices in the emirate Dubai were down more than 12 percent in the third quarter from a year earlier as a stronger dirham deterred Europeans and a slump in oil prices hurt economies across the Gulf Cooperation Council.

As Iran’s second-biggest trade partner since 2009, the U.A.E. 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 U.A.E 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.

If inflation in Iran is controlled, the country may retain capital and attract investment from abroad, Downs said. If not, cash will pour out of the country, but much of that will bypass emerging markets. Iranian investors would gain access to the U.S. and Europe where yields are higher compared with Dubai and volatility and geopolitical risk are lower, according to the report.

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property   /ˈprɒpəti/   N

A building or buildings and the land belonging to it or them:

he’s expanding now, buying property

“the renovation of council properties”

slump   /slʌmp/   V

to be suddenly reduced to a much lower level

“Profits slumped to under $250 million.”

appreciate   /əˈpriː.ʃi.eɪt/    V

to ​increase in ​value:

“The value of our house has appreciated by 50 percent in the last two years.”

“Our house has appreciated (in value) by 50 percent in the last two years.”

“the dollar appreciated against the euro by 15 per cent”

fuel    /fjʊəl/  V

Something that fuels a feeling or a ​type of ​behaviour ​increases it or makes it ​stronger:

“The ​rapid ​promotion of the director’s ​son has itself fuelled resentment within the ​company.”

“The president’s ​speech fuelled ​speculation that she is about to ​resign.”

speculation  /ˌspekjʊˈleɪʃ(ə)n/  N

ideas or discussion about why something has happened or what might happen

speculation about:

“There has been a great deal of speculation about what will happen after the elections.”

speculation that:

“Shannon is visiting Britain amid speculation that a deal has been done.”

flood   /flʌd/  N

a ​large ​amount or ​number of something: “received a flood of applications.”

Third quarter

relating to the third ​period of three months in a company’s ​financial ​year:

“Coca-Cola’s ​sales are expected to ​increase about 10% in the fourth ​quarter, a ​sharp ​improvement from its third-quarter ​


deter    /dɪˈtɜː(r)/   V

to make someone decide not to do something

deter someone from doing something:

“The rain didn’t deter people from coming to the game.”

Well-positioned     /ˌwelˈpleɪst/(alsowell-placed)  Adj

in a good ​situation to be able to do something:

“Roche is well-placed to ​compete with its ​strategy to ​invest in ​research and ​development. “

“Because of everything we have ​planned in ​redevelopment, we are well-positioned.”

International Atomic Energy Agency                                          آژانس بین‌المللی انرژی اتمی

curtail   /kəˈteɪl/   V

reduce in extent or quantity; impose a restriction on.

“civil liberties were further curtailed”

synonyms:   reduce, cut, cut down, cut back, decrease, lessen, diminish, slim down, tighten up, retrench, pare down, trim, dock, lop, shrink;

shorten, cut short, break off, truncate;

restrict, put a restriction on, limit, put a limit on, curb, put the brakes on, rein in, rein back;

“economic policies designed to curtail spending”

inflation   /ɪnˈfleɪʃ(ə)n/  N

 a general increase in prices and fall in the purchasing value of money.

“policies aimed at controlling inflation”

retain    /rɪˈteɪn/   V

to ​keep or ​continue to have something:

“She has ​lost her ​battle to retain ​control of the ​company.”

“ He ​managed to retain his ​dignity ​throughout the ​performance.”

“ She ​succeeded in retaining her ​lead in the second ​half of the ​race.”

“ I have a good ​memory and am ​able to retain (= ​remember) ​facts ​easily.”

bypass  /ˈbaɪˌpɑːs/  V

to avoid dealing with someone or something, especially because you think you can achieve something more quickly without using them; ignore:

“bypassed standard office procedures.”

“I bypassed the lawyers and filed the documents myself.”

emerging    /ɪˈmɜː(r)dʒɪŋ/   or emergent  /ɪˈmɜː(r)dʒ(ə)nt/

just beginning to exist or be noticed

“an emerging consensus that global warming is a reality”

“emerging businesses/markets/economies”

“Western ​governments should be giving more ​aid to the emerging democracies of the Third World.

yield   /jiːld/  N

an ​amount of something ​positive, such as ​food or ​profit, that is ​produced or ​supplied: “Crop yields have ​risen ​steadily.”

“ Yields on ​gas and ​electricity ​shares are consistently high.”

“the milk yield was poor”

volatility N

the trait of being unpredictably irresolute; The noun volatility is the characteristic of changing often and unpredictably. “the volatility of the market drove many investors away”

Geopolitical risk

A common definition of geopolitical risk is the risk of one country’s foreign policy influencing or upsetting domestic political and social policy in another country or region