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Mideast investment flows to Europe will be on the rise in 2018
Outbound Mideast real estate investments are set to pick up according to a recent report by JLL. The report titled ‘Top themes driving Middle East outbound real estate flows in 2018’, explains the trends among Middle Eastern investors while forecasting a shifting in their attitudes due to changes in the international economic landscape.
According to JLL, overseas commercial investment from the Middle East will be significantly boosted in 2018 after the plunge they took between 2016-2017. Analysts predict that investors from this region will turn towards portfolio diversification and acquisition of non-traditional assets. This will come after a sharp dip in oil prices that increased the competitions in the top destination cities for investment such as London.
Specifically, London accounts for over 25% of flows from the region, as it has been an international gateway with a safe and stable investor-friendly environment. In the future, Middle Eastern buyers will seek more creativity in their asset portfolio by adding student housing or hotels.
According to the report, the last few years have been particularly prosperous for London, attracting foreign investments from Hong-Kong, the UAE and Saudi Arabia. In particular, in 2017 US$8.6 billion was pumped into liquid trophy assets in London only by Hong Kong investors.
The report concludes by identifying the biggest “players” in the industry, the High Net Worth Individuals (HNWIs), who have been the most active overseas buyers. Together, UAE and Qatari private investors accounted for over 60% of the volumes, with the remaining balance originating from Saudi investors. These individuals are not only looking to place their money outside of their countries but also aim for higher earnings out of solid investment opportunities.
As for residential real estate, London has been an absolute favourite among Middle Eastern buyers due to the global stance the city holds as an iconic cultural and financial gateway that attracts the best talent in the world.
Copperstones has over 25 years experience in the London residential market and is now also expanding into commercial assets. Most of our clients come from overseas and to best accommodate their demands we work from Dubai and London to deliver excellent bespoke service tailored to their busy schedule.
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