British reality show star Sam Galland bought a luxury villa in Dubai a few months ago. The price of the villa was around Rs 19 crore, which increased further after renovation. Sam recently put the property on the market for sale, but during this time the war between America and Iran started. Due to increasing tension in the Middle East, the situation is such that now no buyer is being found for the villa. He also tried to sell the house at a lower price, but to no avail. Such problems are not limited to Sam only. Since the war, luxury property prices in Dubai have fallen by an average of 25% and the number of property deals has also halved from before. At the beginning of March, there were 31% fewer property deals compared to last year, while compared to February the decline was 51%. For example, buyers had exited the market even before the prices fell. Dubai was until now considered a tax-free and politically stable economy. But due to Iranian attacks, its image seems to be cracking. Experts at Goldman Sachs 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 scared and buyers of expensive properties disappeared. Shares of big real estate developers like Emaar have fallen drastically due to lack of buyers for luxury properties. Many property owners who want to sell their properties have also reduced the prices, yet are unable to find buyers. Prices of luxury property fell by 25%, huge reduction in deals by 51%. Reduction of 20% in property prices has become common in areas like Lanai Island, Arabian Ranches and Palm Jumeirah Islands of Dubai, which are considered the first choice of billionaires around the world. Investors are ready to sell their expensive villas, penthouses and luxury apartments at a discount of Rs 2-4 crore. It is clear from this that the real estate market of Dubai has currently reached a state of stagnation, where the lack of buyers is a bigger problem than the prices. This period is full of uncertainty for investors, because their capital is present on paper, but it has become difficult to convert it into cash. Unless tension in the region subsides, this sluggishness in the market may persist.
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Money of luxury property investors stuck: Demand for villas and apartments decreased in Dubai, which is scorching in America-Iran war; Discount of 2-4 crores, still not finding buyers
