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Middle Eastern investors to spend USD 15 bn in global real estate markets

September 2015

An average of USD 15 billion per year will flow out of the Middle East into direct real estate globally in the near term, according to the latest research from global property advisor CBRE.

The Middle Eastern investor base has expanded, fueled by weakening oil prices. This has led to a major shift in global investment strategies towards greater geographic and sector diversification, with activity spreading across gateway markets to second-tier locations in Europe and the Americas.

A greater proportion of Middle Eastern capital is now targeting the U.S.— during the first quarter of 2015, USD 5 billion was invested globally, almost equally split between Europe and America, with New York, Washington D.C., Los Angeles, and Atlanta targeted.

During 2014, the Middle East continued to be one of the most important sources of cross-regional capital into the global real estate market, with USD 14 billion invested outside of the home region — the third largest source of capital globally.

London, while retaining the top position, is no longer as dominant, with a 32 percent share of all Middle East outbound investment in 2014, compared to 45 percent in 2013. Paris and New York followed London, with 15.8 percent and 9.6 percent respectively of the total outbound Middle East investment.