In an $8.9bn drive Middle Eastern Investors attempt wooing European and US real estate

  • According to a recent report compiled from real estate advisor Savills, Middle Eastern Investors are wooing to target the European and US real estate as the investments in global real estate is growing faster than any other region.
  • The report revealed that the outbound and as well inbound investments have witnessed a huge rise in investments in real estate as it grew by 62 percent in the Middle Eastern turf to be at $8.9 billion during the first half in 2019 and fared much better comparatively than the year-earlier period.

According to Steven Morgan, Savills’ CEO stated that “there is a huge rise in Middle Eastern Investors are greatly drawn towards the global real estate assets as long term investments. This has indeed proved to be highly profitable for Middle Eastern tertiary as it has translated sharpest rise in cross-border transactions, particularly into mature global destinations comprising of Northern Europe and North America.”

Savills also stated that London has traditionally been holding the topmost spot as the global investor capital of the world, as these investors are always keen to take advantage of currency exchange rates. The report also stated that it identified that a $5million investment into a top prime central London real estate would effectively cost 40 percent less today than five years ago (pre-tax).

The report as well pointed out a crucial finding that New York, Paris, Hong Kong, and Amsterdam were also rated in the topmost destinations for investment, while the UK as a whole is undoubtedly the most popular country for capital investment, and is closely followed in by Germany.

On the most satisfactory point noted in by the report is that on the global scale, 2018-2019 are the most active years ever in the real estate, with over $1.8 trillion invested globally.

Mr. Morgan also added that: “London, in fact, is leading powerhouse from the front regarding into the cross border investment into real estate and that their research thus, proves London to be the third most buoyant city worldwide although there is undoubtedly few volatilities around Brexit, the core strength of the UK capital as a global business hub means it will still remain a powerhouse.

The report also constituted that “on an average the prime most central London prices have been around 20 percent lower than it was five years ago and along with the combined aggregated current dollar-pound exchange rates, the Middle Eastern Investors have been already taking huge advantage on very favorable terms with a view on the medium to long term fundamentals of the London market.”

The Savills as well predicted that the core London residential property values would recover in a post Brexit scenario, which would be potentially doubling up by 12.4 percent over the next five years on.

Over the political and economic uncertainty volumes were a tad lower with expected slowness during the first quarter of 2019, but with the intense activity getting aroused ahead in Q2, transactional volumes are now only slightly behind year-on-year.