Mideast investors drive Europe real estate market
Dubai, August 28, 2013
Middle East and North American investors are the major drivers of increased activity in the European commercial real estate market, said a report.
Buyers from outside the region now account for more than a quarter of all transactions in the first half of 2013, said the latest data by CBRE, a global real estate consulting firm.
Investors from the Middle East increased investment activity, accounting for 9 per cent of the entire market and 21 per cent of cross-border transactions during the period, it said.
Capital from the region is generally institutional in nature, with nearly half of the total coming from its sovereign wealth funds. Transactions from Middle Eastern buyers show a strong bias towards London (nearly 50 per cent of the total) and offices, although there were several large retail properties among the purchases made, it said.
“London remains the destination of choice for foreign investors due to its solid growth potential and its status as a global financial hub, alongside its stable political environment and a transparent legal system, which are key for international and regional buyers alike,” said Nick Maclean, managing director, CBRE Middle East.
Buyers from North America accounted for a steadily increasing share of the market (13 per cent of the entire market and 24 per cent of cross-border transactions) in H1.
The total value of commercial real estate investment activity in Europe continued to grow in Q2 at 6 per cent higher than the total for Q1, said the report.
The €32.6 billion ($43.6 billion) recorded over the quarter showed a 22 per cent increase on the same quarter last year and is the highest Q2 total since 2007 (before the financial crisis), it said.
The level of cross-border investment in Europe continues to increase, with foreign buyers accounting for 44 per cent of all transactions in H1 (by value) compared to 40 per cent in the second half of 2012.
A significant change has developed in the sources of cross-border real estate investment, with intra-European investment accounting for just 16 per cent of transactions in H1. This percentage had been holding steady at around 20 per cent of the market throughout 2011 and 2012.
Jonathan Hull, head of EMEA Capital Markets, CBRE, added: “The increase in the proportion of the market comprised by large transactions coincides with an increase in the amount of non-European capital flowing into the market. It has long been the case that buyers from outside the region are focused on larger than average assets and H1 2013 was no exception.” - TradeArabia News Service
More Construction & Real Estate Stories
- CBRE tops Fortune’s most admired firms list
- Kuwait's real estate sales hit $1.1bn in Jan
- Dubai RTA awards $27m roads contract
- Work to start on Bahrain beach project
- Damac launches luxury apartments at Expo site
- Kuwaitis top GCC property buyers in Oman
- Rubber World to showcase at Big 5 Saudi
- Tool to help create effective property listings
- 'Smart' move by Dubai Design District
- Drake unit wins $13m contract in India
- Solar-powered cleaning boats launched in Sharjah
- $27m Expo Hotel Sharjah deal signed
- Arabtec unit wins $282m Emaar contract
- Abu Dhabi to host pool & spa expo
- ADCM unit secures $213m bridging loan
- Cluttons Dubai launches new luxury apartments
- Dubai developer Damac profits triple to $641m
- Dubai to start work on $544m water canal
- Dubai property market can absorb 25,000 units
- Jones Lang LaSalle renamed 'JLL'
- Aldar raises synergy estimate from Sorouh merger
- UAE industrial property sector keeps up growth
- Dubai residential property prices up 26pc
- Majid Al Futtaim to build new mall in Dubai IMPZ
- 300 firms to take part in Dubai property forum
- Naseej inks deal to develop Bahrain projects
- Dadabhai unveils new residential project
- Flowcrete completes Dubai Mall project
- Global asphalt demand hits new high
- $1.3bn infrastructure investment firm set up in Saudi