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Mon 8 Nov 2010 07:46 PM

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Mideast property investors cut expansion plans, says Colliers

Property prices in Arabian Gulf markets have been dropping since the start of financial crisis

Mideast property investors cut expansion plans, says Colliers
NO MOVEMENT: A Collier International survey shows Middle East real estate market has not moved at all over the last six months. (Getty Images)

Middle East property investors are less likely to increase holdings in the region as they seek markets that are seen as safer, according to a global survey compiled by Colliers International.

About 38 percent of Middle East investors questioned by Colliers plan to expand or maintain their holdings in the next 12 months, according to the report released by the Seattle based adviser.

Six months ago, 67 percent said they sought to “adopt expansionary strategies.”

Property prices in Arabian Gulf markets such as Dubai and Abu Dhabi have been dropping since credit dried up at the start of the financial crisis. Markets including Qatar have been hurt by a glut in office property that’s caused rents to tumble.

John Davis, regional chief executive officer for Colliers said: “The results of this survey suggest the Middle East real estate market has not moved at all over the last six months.”

He added: “On the plus side, investors do believe the market is set to find its floor over the next year.”

Half of the Middle East investors said they intend to sell some of their holdings in the region, while none said they would sell foreign assets.

Colliers said: “This further reinforces the view that investors from this region plan to grow their overseas holdings at the expense of their domestic ones as part of a risk reduction strategy.”

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