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According to JLL MENA’s Seventh MENA Real Estate Investor Sentiment Survey 2012.
JLL MENA, the world's leading
real estate investment and
advisory firm, today published its
“2012 Middle East and North Africa (MENA) Real Estate Investor Sentiment Survey.” The report reveals that real estate remains a popular asset class for Middle Eastern investors but a more strategic approach is being adopted as they seek to rebalance their investment portfolios. With real estate providing a more attractive risk/return ratio than alternative investment options, there is an emerging trend of regional investors disposing their non-core assets as they look for income-producing assets offering stable long term returns.
Gaurav Shivpuri, Head of
MENA Capital Markets at JLL MENA, said: “It is noteworthy to see this increasingly strategic route being taken by MENA investors as this is a shift from ‘high capital growth focused land ownership approach’ that has historically prevailed. The survey also indicates that investors are willing to pay more for well-located assets with good security of income, as compared to last year. We estimate that this ‘compression of yields’ should help in reducing the bid-ask spreads, promulgating more transactions in the market place.”
Other key findings:
Craig Plumb, Head of
MENA Research for JLL MENA, concluded:
“At a macro level the MENA real estate market is more optimistic this year, buoyed by continued high oil prices, improving economic performance and greater stability. However little money is flowing into real estate from players outside the region and the investment market continues to be dominated by locally based players. Middle Eastern investors remain major players on the global real estate stage, accounting for a total of US$ 5.3 billion of real estate transactions outside of the region during the first 9 months of 2012.”
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