Middle Eastern investors could
spend as much as $180bn in commercial real estate outside of their own region
in the next decade, according to CBRE.
According to figures from the
firm, Europe is the preferred target for investment, with 80% of the cash
expected to be focused here.
CBRE claimed that $85bn will land
in the UK with a further $60bn directed at continental Europe including France,
Germany and Spain as priority destinations.
Nick Maclean, managing director,
CBRE Middle East, said: “The ‘buy and hold’ strategy adopted by many Middle
Eastern investors within their home region and the resultant lack of deal flow
opportunities leaves much unsatisfied demand here. Coupled with increased
confidence in global markets and the need for diversification, overseas
investment has grown strongly.”
“This trend is set to continue
and with new sources of Middle Eastern capital, particularly from Saudi, set to
enter the market over the next couple of years, the importance of this region
on the global investment stage cannot be understated.”