Economy, Business And Markets

Foreign Housing Markets Enticing Iranians

Foreign Housing Markets Enticing IraniansForeign Housing Markets Enticing Iranians

“If you are seeking residency in your dream country, contact us, and make the best investment of your life…”

A quick browse through Persian-language networks abroad and you will see hundreds of advertisements for property, home, and land deals. Magnetizing money on the pretext of permanent residency has currently become one of the leading investment methods, Eghtesad News reports.

Interestingly enough, real estate was among the most money-making investments in the country until three years ago when the housing market plummeted after a volatile period urged investors to transfer their funds overseas.

Real estate investment, particularly in megacities, used to be sensible and lucrative; however, it was driven to foreign states as investment risks increased with market volatility.

Many believe it will be long before domestic housing market matures to attract immigrating investors who are won over by TV advertisements. This is while the housing settlements on such advertisements can be found within the country as well. Experts and urban specialists believe that with a bit of accreditation and development, the domestic housing market will be appealing to both Iranian and foreign investors.

 Contributing Factors

There are different speculations concerning the reasons behind this investment stagnation and the tendency toward overseas markets. A few experts cite lack of construction plans and failure to control real estate prices in Iran as two contributing factors. Others believe the government’s involvement in the construction of Mehr Housing Scheme during the past seven years has robbed people of their trust in government to make any further investments.

While real estate is regarded as a nation’s foundation and has the potential to develop and organize urban construction, the thriving real estate market in neighboring countries has managed to further encourage the immigration process.

Since Europe’s economic situation deteriorated in 2000, many European countries have been changing their immigration laws as part of their new economic plan. Several countries introduced new ways of immigration such as through investments in real estate – a method well-received by many Iranians.

In several European cities including some in Spain, permanent residency applicants are required to pay an average of €150.000 to purchase real estate. The amount could vary in different states. A few developing countries have also offered a lease option to further accelerate the immigration process.

In 2010, Turkey lifted housing discrimination, and allowed foreigners to buy and sell real estate enjoying the same rights as a native Turkish citizen, including the right of inheritance. However, we are yet to see how long such rules will apply.