London Gets Half of Mideast Commercial Property Cash in Europe
London was the destination for almost 50 percent of Middle East investment in European commercial property in the first half as political stability and growth prospects attracted buyers, CBRE Group Inc. (CBG) said.
The Middle East accounted for 9 percent of all commercial real estate bought in Europe during the period, up from 6 percent a year earlier. The region’s share of foreign investment on the continent increased to 21 percent from 12 percent. North America was the biggest investor, with 13 percent of the total and 24 percent of the forieign share.
“London remains the destination of choice for foreign investors due to its solid growth potential and its status as a global financial hub, alongside its stable political environment and a transparent legal system,” Nick Maclean, Middle East managing director at CBRE, wrote in the report.
Almost half of the Middle East investment in Europe comes from the region’s sovereign wealth funds, according to the report. Foriegn investors accounted for 44 percent of all European commercial property transactions, up from 40 percent a year earlier. Cross-border investments within Europe declined to 16 percent of transactions, compared with 20 percent through 2011 and 2012, CBRE said.
To contact the reporter on this story: Zainab Fattah in Dubai at firstname.lastname@example.org
To contact the editor responsible for this story: Andrew Blackman at email@example.com