London, 11th April 2007 - Investors from Gulf Cooperation Council (GCC) countries remained key players in global real estate markets throughout 2006, investing US$13 billion, up 14% year-on-year according to Jones Lang LaSalle’s latest Global Real Estate Capital Report.
Over half of this US$13 billion was spent in the US (US$7 billion), followed by the UK (US$4 billion), Germany (US$1 billion) and South Africa (US$1 billion). Major investments were also made in France and Sweden.
Tony Horrell, CEO of Jones Lang LaSalle’s International Capital Group commented: “GCC funds are focusing less on trophy assets and are making significant purchases in emerging markets, including the entire Cape Town waterfront development and Europe’s largest shopping centre in Istanbul. As well as looking for opportunities in emerging markets, GCC funds are also looking for value added opportunities.”
GCC funds also traded significantly more assets than previously, selling US$2 billion of real estate in both the US and the UK, up 50% on 2005.
Middle Eastern economies remain buoyed by sustained high energy price levels and are estimated to achieve current account surpluses approaching US$ 260 billion in 2007.
Padraig Brown, Global Strategy and Research Director at Jones Lang LaSalle said: “Gulf economies are now voracious real estate investors. Funds are currently investing 5% of the regions’ current account surpluses in global real estate markets. This is in addition to funding almost 25% of global development activity which is occurring in their home markets, and significant flows into indirect real estate funds.”