By Andy Sambidge
New report says regional buyers are deploying 'large amounts of capital' in real estate
Middle Eastern investors are continuing to play an active part in real estate investment markets globally with transactions in many of the world's largest cities, according to a new report by Jones Lang LaSalle.
The report said buyers from the region were demonstrating their ability to deploy large amounts of capital for the right opportunities.
Fadi Moussalli, head of the International Capital Group in the Middle East said: "With inflows from relatively high oil prices continuing to provide a consistent source of capital the opportunities provided by commercial real estate are very attractive for investors from the Middle East at the moment.
"We continue to see capital move from the Middle East to Europe and the United States in particular. Whenever good, quality core assets are on the market investors are attracted by the consistent income flow and possibility of longer term capital growth."
Global commercial real estate markets continued to rally in 2013 with transaction volumes in H1 up 11 percent on H1 2012, Jones Lang LaSalle's capital markets research said.
The research, which spans 60 countries and over 130 cities worldwide, said direct commercial real estate investment volumes in Q2 reached $114bn globally, up four percent on Q2 2012 and up nine percent on the previous quarter.
Continued strong growth in Q2 has kept global volumes above $100bn for five consecutive quarters, evidencing increasing investor confidence in commercial real estate, despite volatility in equity and bond markets, the report said.
The largest markets globally continued to see growth over the first half of the year with Japan (up 50 percent), Australia (up 10 percent), UK (up four percent), Germany (up 43 percent), France (up six percent) all recording half year increases compared to H1 2012.
Only China (down 20 percent) saw transaction volumes fall in the first half.
"Middle Eastern investors continue to play an active part in investment markets globally with transactions in many of the world's largest cities, demonstrating their ability to deploy large amounts of capital for the right opportunities," the report said.
Jones Lang LaSalle's forecasts for the remainder of 2013 remain at between $450-500bn.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.