Dubai real estate market sees rapid recovery as senior hiring to surge by 40%
Peace deal between US and Iran set to unleash the emirate’s “serious buyers”.
With an initial peace deal between the US and Iran set to be signed on Friday, Dubai’s real estate market is in a state of rapid recovery.
Many details are yet to be ironed out, with negotiations to continue for a 60-day window after the ceremony in Switzerland, but senior figures on both sides hope for a lasting peace that lifts economic sanctions and decides the fate of Tehran’s nuclear programme.
For the Dubai real estate market, after taking a big hit in the early days of the conflict as many would-be buyers put transactions on hold, the news is very welcome.
“The peace deal removes the single biggest psychological barrier to buyer commitment,” Justin McGuire, Chairman of MCG Talent and founder of Justin McGuire Talent Advisory, told Arabian Business.
“Serious buyers who have been sitting on the fence will start moving again.”
Money to ‘move quickly’
Mr McGuire added that he expects transaction volumes to “recover meaningfully” within just 60 to 90 days, amounting to a rapid recovery given the proposed deal comes during the summer months.
“The Strait of Hormuz being closed was an existential threat to the region’s economic credibility,” he continued.
“Every business I speak to had mandates frozen, hiring decisions deferred and expansion plans on hold.
“Money that was sitting on the sidelines waiting for clarity will move quickly. The Gulf has always recovered faster than people expect after shocks. This will be no different.”
What about recruitment?
Another noticeable short-term consequence of the conflict was the difficulty businesses faced in attracting new international talent.
Several business leaders reported having to answer difficult questions about safety that would never have materialised previously.
However, “the peace deal removes that conversation entirely” and Mr McGuire expects to see “senior executive hiring accelerate by 30 to 40 per cent in Q3 versus Q2”.
“The talent pool that sat tight through the conflict now has options globally again and they know their value,” he said.
“In terms of numbers, I would expect senior executive hiring to accelerate 30 to 40 per cent in Q3 versus Q2, and international candidate appetite for Dubai roles to recover to pre-war levels within two quarters.”
What do we know about the proposed deal?
The peace deal was proposed by Pakistani and Qatari mediators, as well as by the US and Iran.
US President Donald Trump has said he would send the deal to the US Congress for a review after the signing ceremony this week.
“I like the idea, send it to Congress please,” he said at the start of a meeting with UAE President Sheikh Mohammed bin Zayed Al Nahyan on the sidelines of the G7 summit. “I mean who wouldn’t approve it.”
The US will allow Iran to immediately start selling oil and fuel again as part of the deal.
It also includes the free flow of navigation in the Strait of Hormuz and sets out provisions to ensure Iran will not obtain a nuclear weapon.
An Iranian deputy foreign minister on Tuesday said the two-month US naval blockade on the country’s ports had been lifted.
“The lifting of the blockade was something we had emphasised from the outset. It has now begun, and the blockade has been lifted prior to the formal signing,” said Iranian deputy foreign minister Majid Takht-Ravanchi.
