(Persia Digest) – An expert of Iran’s housing market believes: “Iranians will spend a larger amount of their money to buy property in other countries and survive political and economic risks if dollar fluctuations increase in the next Iranian calendar year (to start on 21 March 2019).”
The Head of Tehran Real Estate Consultants Union has announced that Iranians have bought 8,000 residential units in Izmir, Turkey, in the first 10 months of the current Iranian calendar year. In addition to Turkey, Iranians have also bought more land in Georgia and Dubai.”
What is encouraging Iranians to buy land in other countries?
Dr Mehdi Soltan-Mohammadi, an expert of the housing market, answered the question in an interview with Persia Digest (PD) by saying: “The number of Iranian emigrants shows no significant differences as compared to the global rate and compared to other countries with a similar situation as Iran. According to figures, 10,000 Iranians emigrate to the US each year, 10,000 to Canada and about the same number go to European or other developed countries as well as Iran’s neighboring states. Therefore, it is an overstatement to say that millions of Iranians emigrate to other countries annually.”
“In a globalized world, people do not necessarily search for their work or professional opportunities within their national borders. The replacement of human resources and finding new job opportunities in other countries is part of globalization,” he said.
Soltan-Mohammadi also commented on the tendency by Iranians to invest in other countries by saying: “A number of Iranian migrants need to buy property to live in. Other Iranians buy property in other countries to diversify their investment and use global opportunities; this is not limited only to Iran. There are many Canadians who invest in the US and vice-versa to be safe from foreign currencies fluctuations in their respective countries.”
Referring to fluctuations on Iran’s forex market, the housing expert said: “Following the changes in forex prices, a number of investors decided to exchange their money into dollars. Some invest in the global stock exchange and some others buy properties. However, given the traditional tendency by Iranians to buy land, today we are witnessing that they are buying properties in other countries, but the volume of this investment is low and it can’t be said to be a large figure. It should also be noted that high investment opportunities in target countries impact increased property acquirements there. There was a time when Iranians believed that Cyprus will progress but now they have the same feeling about Turkey.”
Soltan-Mohammadi said purchasing property in other countries by Iranians should not be seen as a crime or something unusual. He added: “This is part of life’s realities in a modern world. There are similar situations in other countries. The Chinese are doing the same; nevertheless, as Iranians have limited relations with the world and lower incomes, the amount of their investment in other countries are not remarkable.”
As for the landscape of increased property purchases by Iranians abroad in the coming Iranian calendar year (1398), he said: “The current year (1397) was a high risk year for Iranians in terms of politics and economy; therefore, investment abroad has grown. If dollar fluctuations increase in the next Iranian calendar year, people will change part of their assets to properties in order to be safe from possible risks.”
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