London benefitted from almost half of Middle Eastern investment in European commercial property in the first half of 2013, according to CBRE. Buyers were drawn by its political stability and prospects for growth.
Investors from the Middle East made up nine per cent of all real estate buyers in Europe in the first half of 2013. One year ago, it was six per cent of sales. Foreign investment in the region increased to 21 per cent from 12 per cent. North American investors put up 13 per cent of the total funds, and 24 per cent of the foreign share.
CBRE’s Middle East managing director, Nick Maclean, stated recently that London is the “destination city of choice” for foreign investors because of its solid growth potential and its status as a global financial hub. Buyers are also being drawn to it due to its “transparent legal system.”
According to the report, approximately half of the Middle Eastern investment in Europe comes from the region’s sovereign wealth funds. Offshore investors were involved in 44 per cent of all European commercial property transactions, compared to 40 per cent one year ago. Cross-border investments in Europe dropped to 16 per cent of transactions, as opposed to 20 per cent in 2011 and 2012.
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