Iranians Snapped Up Property Worth $128 M In Burj Khalifa During H1Wednesday, August 08, 2012
As per data from Dubai’s government, during the first six months of this year Iranians investors purchased property worth $128 m in Burj Khalifa. Since the sanctions on Iran stopped Iranians investors to access banks, in many cases they used cash to purchase property in the world’s tallest tower, the Burj Khalifa.
Dubai’s Land Department said on Tuesday that after Indians, Iranians remained the second largest buyers of commercial space and luxury apartments in Burj Khalifa during the first six months of the year. As per real estate brokers, apartments in Burj Khalifa range from AED 2,600 to AED 3,800 per square foot. Average prices in prime locations of London range from $3,000 to $6,000 per square foot which shows Burj Khalifa apartments are much cheaper than them.
During the first half of year, foreign investors purchased property worth AED 28.3 bn which is 36% higher as compared to previous year. As per Dubai Land Department, 358 Iranians purchase property in Burj Khalifa from 1st January to 30th June because the market is now slowly heading towards recovery.
One of the real estate brokers in Dubai said that it sold three floors in Burj Khalifa and the major part of purchase was made by Iranians. It also highlighted that problems in getting finance are leading Iranians to make cash buys. Due to economic sanctions, Iran’s links to international banking system have been cut off and that is the very reason why cash purchases are becoming common on their part.
Noor Islamic bank in Dubai was pressured by US government in December to stop channeling dollars from Iranian oil sales through its accounts. Since Dubai has been a major trading hub for Iranians for over a century, Iranian investors have money which can be easily invested. Iranians have many trading firms registered in Dubai and they purchase property through them due to sanctions. DLD’s data also shows that British, UAE citizens and Pakistan’s remained the third, fourth and fifth most active buyers of Burj Khalifa property.