The pace of the real estate market may be much slower than the figures show, the effects of which will be revealed in the coming month, experts said.
The effects of the Iran war in Dubai have badly affected the real estate market, where investor confidence has shaken and a 30.50 percent decline in sales has been recorded during this period.
Foreign media have reported with reference to real estate platform DSB Interact that property sales have decreased by 30.50 and there were 11,828 transactions from March 2 to March 29 compared to 17,027 transactions before February 28.
The report said the financial impact of the Iran-Iraq war in the month has been even greater, with total transaction volume falling 36 percent from $16.53 billion to $10.58 billion. Similarly, the Dubai Financial Market Real Estate Index also fell 21.23 percent.
Industry experts said the slowdown in the market could be more serious than documented, with Bayram Teksoy, chairman of the Istanbul Real Estate Services Exporters Association, telling Anadolu news agency that demand for real estate purchases has fallen by up to 70 percent, with the effects likely to be felt in the coming months.
He said that quiet streets and empty hotels are forcing developers to offer discount offers and be flexible in payment plans to maintain the city’s premium market image.
Bayram said the UAE has suspended the extension of residency visas or permits for about 600,000 Iranian citizens due to security concerns due to the war.
The market has shifted to a cautious wait-and-see approach, with buyers looking for long-term projects with lower down payments and longer installments, said Burak Ostoglu, CEO of Real Estate Advisory Company.
He said property prices have already fallen by about 10 percent, which raises concerns that the situation could last for months if the conflict escalates, and that market prices could fall by as much as 30 percent.
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