The ongoing war in West Asia has reportedly dealt a severe blow to the high-value real estate investments made by several influential politicians and business magnates from Andhra Pradesh and Telangana in Dubai and other Gulf cities.
According to sources, several political and industrial bigwigs parked their money in Dubai’s booming property market over the years.
They are believed to have invested heavily in luxury apartments, commercial towers, and premium rental properties across Dubai, Sharjah and other parts of the Middle East.
Now, with tensions in the region mounting due to the ongoing US-Iran war and its impact across West Asia, the once-lucrative investments are reportedly witnessing a sharp fall in value.
For example, a former Rajya Sabha member from undivided Andhra Pradesh, who allegedly played a key role during the Y S Rajasekhar Reddy government between 2004 and 2009, is learnt to have invested heavily in Dubai’s real estate market over the years, with the estimated value of his assets reportedly touching over Rs 20,000 crore at one stage.
These properties were supposed to be safe overseas assets and also served as a major source of recurring income through rentals.
Industry insiders say such investments had generated substantial monthly and annual returns when Dubai’s property market was at its peak.
However, the situation appears to have changed dramatically in recent weeks.
With fears of regional instability deepening, a section of expatriates and business occupants is understood to have moved out of vulnerable zones or relocated to safer regions, affecting rental occupancy in several high-end and commercial properties.
As a result, investors are now said to be facing a twin setback — a decline in capital value and a drop in rental returns.
Sources said uncertainty has triggered panic among overseas investors, especially those who had pumped in large sums in expectation of long-term appreciation and stable rental yields.
The latest developments have reportedly triggered concern in political and business circles back home, especially among those with substantial exposure to Gulf real estate.
While there is no official estimate of the total value of properties held by investors from the Telugu states in the region, those in the know say the exposure runs into thousands of crores.
