Middle Eastern investors injected US$13bn (£7.5bn) of capital into global real estate markets last year
Published today, Jones Lang LaSalle’s latest Global Real Estate Capital Report shows that more than half of this US$13bn was spent in the US, followed by the UK (US$4bn/£2bn), Germany (US$1bn £500m) and South Africa (US$1bn/£500m). The total capital deployed is up 14% year-on-year.
Tony Horrell, chief executive officer of Jones Lang Lasalle’s International Capital Group, said: ‘Gulf-based funds are focusing less on trophy assets and are making significant purchases in emerging markets, including the entire Cape Town waterfront development and Europe’s largest shopping centre in Istanbul. As well as looking for opportunities in emerging markets, these funds are also looking for value added opportunities.’
The research also shows that Middle Eastern funds were much more active traders last year than previously, selling US$2bn (£1bn) of real estate in both the US and the UK, up 50% on 2005.
Padraig Brown, global strategy and research director at Jones Lang LaSalle, added: ‘Gulf economies are now voracious real estate investors. Funds are currently investing 5% of the regions’ current account surpluses in global real estate markets. This is in addition to funding almost 25% of global development activity which is occurring in their home markets, and significant flows into indirect real estate funds.’