GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> LifeStyle

 
  Share
  • US$5.0 billion invested globally from the Middle East in Q1 2015
  • Middle Eastern Capital Increasingly Targeting U.S. Markets
  • Private Investors Emerge as Major New Source of Outbound Capital

Dubai, August 03, 2015 – An average of $15.0 billion per year will flow out of the Middle East into direct real estate globally in the near term, according to the latest research from global property advisor CBRE Group, Inc.

The Middle Eastern investor base has expanded, fueled by weakening oil prices; this has led to a major shift in global investment strategies towards greater geographic and sector diversification, with activity spreading across gateway markets to second-tier locations in Europe and the Americas.

A greater proportion of Middle Eastern capital is now targeting the U.S.— during Q1 2015, US$5.0 billion was invested globally, almost equally split between Europe and Americas, with New York, Washington D.C., Los Angeles, and Atlanta targeted.

During 2014, the Middle East continued to be one of the most important sources of cross-regional capital into the global real estate market, with US$14.0 billion invested outside of the home region — the third largest source of capital globally.

London, while retaining the top position, is no longer as dominant, with a 32 per cent share of all Middle East outbound investment in 2014, compared to 45 per cent in 2013. Paris and New York followed London, with 15.8 per cent and 9.6 per cent respectively of the total outbound Middle East investment.

Top Investment Hotspots for Middle Eastern Capital in 2014

Middle Eastern investors are becoming more active across a wider range of sectors. This is clearly evident in the U.S. where, historically, these investors have bought office buildings and trophy hotels in New York, Los Angeles and other gateway markets. Competition from Chinese investors and other global capital sources means that these investors are increasingly seeking alternatives, such as Abu Dhabi Investment Authority's $725 million acquisition this year of a 14.2 million-sq.ft. industrial portfolio.

Nick Maclean, Managing Director, CBRE Middle East, said, “The Middle East will remain one of the most important sources of cross-regional capital in the global real estate market. The weakening of oil prices is likely to lead to the sovereign wealth funds reducing their total spend but we see strong growth in overseas investment from families and other institutions, in many cases, for the first time.”

With a greater allocation to real estate and more concentration on geographical diversification away from the home region, the potential for non-institutional investors to expand their global real estate acquisitions is of growing importance. This growing trend has had a significant impact on Europe—where their combined real estate investments grew by 56 per cent year-on-year to $4.8 billion—creating a shift in the balance between institutional investors and non-institutional. Non-institutional capital accounts for close to 60 per cent of the total Middle Eastern investment in Europe in 2014.

CBRE forecasts that global real estate investment by non-institutional capital from the Middle East will range from US$6.0 billion to $7.0 billion per annum in the near-term, if not higher, increasing from approximately US$5.0 billion per year during 2010 to 2013.

“Private capital from the Middle East is once again becoming a measurably more important investor group globally. The most immediate change will bring down the average lot size, as non-institutional investors tend to target assets at circa US$50.0 million. This extends naturally to a more diverse investment strategy—a trend already felt in the market so far in 2015 and is expected to become more pronounced in the next 6-18 months. In particular, we expect the Americas region to see more capital flows from the Middle East, with Europe less dominant than it has been over the last five years,” said Chris Ludeman, Global President, CBRE Capital Markets.

In addition to private capital, SWFs from the Middle East are also expected to remain important market-makers, albeit not as strong in their acquisition strategies as they would have been if oil prices had not fallen. It is very unlikely that regional governments will make radical decisions to affect the existing capital allocations, with only new allocations likely to be affected. CBRE expects US$7.0 billion to $9.0 billion per annum of Middle Eastern SWF investment to flow into direct global real estate in the near- to mid-term, compared to what would have otherwise been in the range of US$9.0 to $11.0 billion per annum had oil prices remained at levels above $100 per barrel.

“Recent signs that the Middle Eastern investor base is maturing and becoming more complex in nature are a healthy attribute not only in the context of global real estate, but also for the development of local markets in the Middle East. However, as a significant proportion of wealth accumulated in the Middle East will continue to be natural resource driven, diversification, and global diversification in particular, will be the key to Middle Eastern investors' future strategies,” said Iryna Pylypchuk, Global Research, CBRE.



Posted by : GoDubai Editorial Team
Viewed 12548 times
Posted on : Monday, August 3, 2015  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Abdullah Alajaji views on the Fluctuating Dubai Real Estate Market
Next Story : Leading Dubai Real Estate Agency Files Bankruptcy
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Time for Some AIGNER Love
Reverse the effects of hair fall with Crescina Re-Growth HFSC Shampoo
RUNWAY DUBAI creates a new buzz campaign for fashion tourism
Achieve whiter teeth at home with Spotlight Teeth White Strips
Noble™ Anti-aging Skin Care Products
Skyline Conducted Women of Substance: A Panel Discussion on Women Empowerment
Golden Bridge Rectangle Diamonds Celebrates The Virtuosity Of Art Deco Design Genius
UAE National Day celebrated in Skyline Carnival 2017
SUC signed MOU with Waldorf Astoria Ras Al Khaimah
SUC conducted Tour Guide Training Program for SCTDA
Calvin Klein Presents Steadfast Collection
Gift gorgeous skin this festive season.
Mido's Multifort Escape - An uncompromising timepiece for exploring new horizons
Mohammed bin Rashid Launches UAE Astronaut Programme
NIVEA MEN and Real Madrid Extend Partnership Globally Covering 70+ Countries
Sthan, bringing you authentic Frontier food from beyond borders, is now open in Dubai
Absolutely Rejuvenated Skin to Start the New Year
Coach Women's Lex Stainless Steel Bracelet Watch Collection
BOSS watches presents Navigator Collection
‘Artistry' - Branded Jewellery show at Malabar Gold & Diamonds' outlet in Meena ...
Celebrate the Festive Season With the Galleria on Al Maryah Island in Abu Dhabi
Together for Egyptian Cinema: A Million happy viewers
Feast your way into the festive season at The Coffee Club
Bovet Presents Brilliant Is Beautiful Gala Benefitting Artists for Peace and Ju...
Glamazle.com names a Lipstick after Yardstick Marketing as a testimonial to the ...
Step into 2018 with skinade & slow down the signs of ageing
Svelte BU4108-11H dress watch in black and rose gold plating makes an impact
Lg V30+ Launches in the Uae and Makes Its Way Into Customers' Pockets and Lives
The First “Dilmah Silver Jubilee Gourmet” in a Middle East Hotel Opens in Pullma...
Hottest Smartphone ever! Go get a true luxury phone from HUAWEI
Over 200 developers across India participate in CREDAI's Indian Property Show
With the Increasing Trend of Grooming Among Men, Kaya Skin Clinic Launches an Ex...
Unilever's Lipton Jebel Ali Tea Factory First in MENA to Achieve Bronze World Cl...
Win 3000 Dollars with Splash
Ghantoot present 17th Emirates Open Polo Championship International
Epson to showcases the future of large laser display technology at InfoComm MEA 2017
SUC Conducted the 10th CEO Lecture Series
Switzerland wins a Good Design Award for the first chronograph-watch in history
Automechanika Riyadh turns focus on exciting growth potential of Saudi automotiv...
DIFF Welcomes Robert Bosch Stiftung to the Festival's 14th Edition
Al Tayer Motors Celebrates 100 Years of Ford Pick-up Trucks
The Verses of Peace Exhibition begins at the Abu Dhabi World Trade Centre
Registration Opens for the Fazza Championships for Falconry 2018
Dubai-based teen star Polina Butorina releases her debut album ‘Ocean of Emotions'
SOUQ launches “Amazon Global Store” bringing over a million global products to t...
Saxo Bank 2018 Outrageous Predictions: 2018 will be a true roller coaster ride c...
Green Hope on Former US Vice President Al Gore's 24 Hours of Climate Reality telecast
The du Youth Council Holds a Volunteering Day at Al Ain Zoo with People of Deter...
Huawei's ultimate gift guide for the 2017 Holiday Season
Indian realty in revival mode, says industry expert