Middle Eastern investors will inject approximately $145 billion into European property markets over the next decade, a new report suggests.
According to experts from real estate firm CBRE, France, Italy, Spain and Germany will all be particularly popular locations, with cultural acceptance, market transparency and diversification all cited as key reasons for such targeting.
It is thought that a further $35 billion will be spent elsewhere in the world, thenational.ae reports. A significant portion of the overall investment – approximately $135 billion – will come from sovereign wealth funds, with property developer s covering the remaining amount.
In the report, CBRE predicts that only ten per cent of the money will find its way to markets in North and South America. According to gulfbusiness.com, one of the authors wrote: “While some increase in interest towards the Americas is expected , the need for Middle East investors to diversify away from US dollar-dominated investments will counteract the fundamental attractiveness of real estate as an asset choice.”
CBRE estimates that the remaining ten per cent portion will be spent in the Asia Pacific region.
The report goes on to suggest that the surge in overseas spending will be driven by a significant mismatch between the number of commercial properties available in the Middle East’s domestic markets and the ever-growing spending power of the region’s in vestors.
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