CBRE: Middle East Investors to Spend $15B Annually on Global Real Estate
Research from CBRE indicates that an average of $15B per year will flow from the Middle East directly into global real estate in the near-term future. In 2014, the Middle East was the third largest source of global capital by investing $14B outside of its borders. Investors from the region are increasingly targeting US markets and becoming more active across a wider range of sectors. The $5B invested globally in Q1 2015 was almost equally split between Europe and the Americas. While London remains the top target for Middle East investors, New York, DC, Los Angeles and Atlanta have seen an increase in interest from the region. The investor base has shifted due to the weakening of oil prices, leading to a shift in global investment strategies toward greater diversification. “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, CBRE. "We expect a greater amount of this capital to start looking beyond the gateway markets to achieve its objectives."