New York, London, Washington DC Top Target Cities

According to global property advisor CBRE, Middle Eastern investment in global commercial real estate reached $10.1 billion in the 12 months leading up to Q2 2017, with the United States the top country target, while New York City and Washington are among the leading cities.

After a period of exceptionally strong investment activity, outbound investments from the Middle East eased and returned to similar levels as recorded in 2013 and 2014. The Middle East nevertheless remains a major source of capital globally, representing 8 percent of total cross-regional investments between Q2 2016 and Q2 2017. 

The U.S. is the top country destination for Middle East investment volume, reaching $3.9 billion in the year to Q2 2017, slightly down from $10.3 billion during the same period in the previous year. London ($1.68 billion) was the leading city target for Middle Eastern investors, followed by New York ($820 million) and Washington, D.C. ($469 million).

Investors from the Middle East remain active buyers in the global real estate market and continue to target core assets with long leases in safe-haven locations. The recent decline in oil price only strengthened the case for investors to diversify their income streams, both in terms of asset classes and geographies; they are taking a long-term view,” said Chris Ludeman.

In line with previous years, Sovereign Wealth Funds remain the largest source of Middle Eastern capital, acquiring $5.4 billion in real estate assets globally between Q2 2016 and Q2 2017, although this represents a decline of 17 percent year-over-year. High net worth individuals and private investors from the region were less active compared to previous years, which indicates that this group might be more susceptible to adverse market conditions.


Please enter your comment!
Please enter your name here