Middle Eastern investors to spend $15B annually on global RE
From left: Sheikh Khalifa bin Zayed Al Nahyan, ruler of Abu Dhabi, 5 Madison Avenue and Qatari emir Sheikh Tamim bin Hamad Al Thani
Middle Eastern investors are projected to spend an average of $15 billion annually on the international property market over the next few years, according to a new report.
With low oil prices pushing investors to diversify, Middle Eastern sovereign wealth funds, and, increasingly, private investors, are likely to take even more of their cash abroad, according to the report, prepared by CBRE. The $15 billion estimate represents a potential increase of a billion dollars over the 2014 total of $14 billion.
Qatari investors and funds sent the most capital abroad last year, a total of $4.9 billion. Saudi Arabia was the second largest source, with $2.3 billion invested globally, an increase from the kingdom’s near-zero outbound investment in 2013. New York City was a major beneficiary of these funds last year, with about $1.5 billion of investment flowing in, trailing only London and Paris.
“As the big sovereigns continue to seek safe havens and long-term stable growth potential, the flow of capital from the Middle East will become even stronger,” said Spencer Levy, Americas Head of Research at CBRE. “We expect a greater amount of this capital to start looking beyond the gateway markets to achieve its objectives.”
Middle Eastern investors spent $5 billion in the first quarter of 2015, with the money split nearly evenly between Europe and the Americas. New York, Washington, D.C., Los Angeles, and Atlanta were the top U.S. destinations.
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Source News: Therealdeal.com