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According to the region’s premier investors, responding to JLL MENA’s 5th Real Estate Investor Sentiment Survey for the MENA region.
JLL MENA Real Estate Investor Sentiment Survey reveals that investor sentiment is improving in the
MENA real estate market overall while
Dubai remains stable. With investors becoming increasingly selective between regional real estate markets, the survey also confirms that they are becoming more focussed on the more populous markets of
Saudi Arabia and
The findings from
JLL MENA’s Fifth Investor Sentiment Survey, an in depth study of real estate investors, conducted in association with
Cityscape Intelligence, also indicated that the majority of respondents anticipate capital values to modestly increase in most
MENA markets except the UAE over the next year. In addition, MENA yield expectations are seen to have largely stabilised over the past six months as they have remained in double digits across all markets.
At a regional level, the report revealed that buyers exceed sellers in most markets, with a continued appetite for income-producing, investment grade real estate assets. Although MENA investor sentiment favours Asia Pacific, this opinion is not reflected in actual transactions as the cashflows are mostly towards Western Europe and the UK in particular.
Andrew Charlesworth, Head of
Capital Markets at JLL MENA, commented:
“Sentiment is stabilising and marginally improving, as investor confidence returns on the back of the region’s economic recovery. Market regulation and legislation remain the most important factors influencing investment decisions, particularly for organisations addressing a variety of risk management and corporate governance issues. Oil wealth and large local populations are other vital factors which are positively shaping investor sentiment, especially in the cases of Saudi Arabia and Egypt.
Despite the high expectations about the Saudi market, investors are still challenged by local transparency and finance issues. Overseas investors find it difficult to penetrate the Kingdom’s market as they face problems in identifying and securing investment-grade products. This may negatively affect sentiment going forward. On the other hand, Dubai may be challenged by short term market fundamentals but investors still acknowledge this market as the regional leader in terms of its infrastructure and general business environment. The Dubai market continues to be preferred by investors but only for the right product with this confidence expected to gradually improve as the UAE rebuilds its population and employment base and the government works towards market reforms and a more transparent regulatory environment.
Within the MENA region, with the exception of Saudi Arabia, investor focus is generally moving away from the GCC towards North Africa and Levant. This northward shift is happening because of investment opportunities in new product development are increasing and these markets have not been impacted by high supply levels.”Key findings of the report include:
Sentiment continues to favour Asia Pacific Region:
Saudi remains favoured destination,
Egypt emerges strongly:
Increasing signs of recovery in selected markets:
Sentiment towards UAE lags other markets:
Yield expectations stabilising:
Northward shift within MENA region:
Reducing risk and increasing certainty remain paramount:
Notes to the Editors:
About the Survey:JLL MENA’s Fifth Investor Sentiment Survey, incorporates the views of leading real estate institutional investors from across the MENA region and beyond. These institutional investors include sovereign wealth funds, investment banks, private equity investors and large high net worth family businesses. The survey provides a benchmark for the state of regional real estate markets and offers valuable insights on investor attitudes and future expectations. The detailed report of this survey is available on
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