Property prices and transactions are down in Dubai due to the US and Israeli war with Iran, leading to a London brokerage declaring the city’s reputation “in tatters”.
Black Brick argued that investors will rethink being so intertwined with the UAE housing market in future, where people can be imprisoned or fined for posting anything negative about the country.
The Black Brick report said: “Dubai’s reputation for safety and price growth is of course now in tatters.
“And the conflict has also given an unsavoury peep behind the veil of the, by British standards, repressive regime which has been playing hardball with anyone daring to comment negatively about the situation on social media.”
This could boost London property instead, which now seems far more stable with its rule of law and free speech.
The Dubai Financial Market Real Estate Index found that home sales fell by 25% in the two weeks between March 2 and 16, compared to the February 16-March 1 period.
Meanwhile house prices have fallen by as much as 26.7% according to the MSN, which was for a new luxury 2-bedroom apartment which is being listed for £900,000, down from £1.2 million.
Dubai has attracted high amounts of investment from those who may otherwise have invested in Prime Central London, owing to its tax efficient environment and high rental yields.
However, as the Black Brick report added: “The war has changed all that.
“Over the past month expats have been scrambling to return to the safety of home.”
Whole some are looking to leave Dubai, others plan to adopt a wait-and-see strategy.
Camilla Dell, managing partner of Black Brick, said: “The instant impact in London has been on the rental market.
“Those that have sold their homes, or rented them out, urgently need somewhere to live, and the short-let market will certainly see a jump as a result.”
She added: “What it will make people focus on is the importance of diversification and not having all your eggs in one basket.
“There are people who sold all their properties to move to Dubai and are now regretting it.”
