Property investors in the Middle East are spending more than ever in London, with the capital’s affluent areas proving particularly popular, gulfbusiness.com reports.
Figures released this week by property advisory firm CBRE show that buyers from the region accounted for 17 per cent of London’s commercial real estate deals in 2013, with transaction values totalling £4.5 billion. This is up from 7.5 per cent in 2012.
CBRE’s managing director in the Middle East, Nick Maclean, spoke about the reasons behind the surge. He was quoted by arabianbusiness.com as saying: “Property markets and commercial real estate in particular across Germany and the UK is witnessing the strongest growth since the financial crisis and we anticipate further commitments from Middle Eastern investors in the future.
“London, in particular, is capturing the lion’s share of capital mainly attributed to its transparent legal system, stable political and economic environment and above all liquidity – key factors in attracting investment.”
A separate report released recently by Jones Lang LaSalle (JLL) suggests that ongoing political troubles across a number of countries in the region have encouraged many investors to look west when searching for new opportunities.
According to JLL, London is now the most popular western city among Middle Eastern investors, with Mayfair, Knightsbridge and Kensington the most sought-after areas.
Across the the whole of the west, Middle Eastern investment values reached £8 billion in 2013, breaking the previous peak recorded in 2006.
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