Middle East property market weighed down by pricing, supply issues
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Jones Lang Lasalle: Mena funds looking to invest
Although many investors say they have the funds and desire to secure more assets in the Mena real estate market this year, actual transactions are likely to be limited by a lack of suitably priced products, according to a new survey by Jones Lang Lasalle.
The poll of 30 institutions with investments in local real estate revealed that nearly 75% had funding in place and were actively seeking investment opportunities in the Mena region this year, compared to only 7% that were looking to decrease their level of exposure.
Respondents also indicated that they plan to invest up to $6bn in the real estate market over the next one year, but this figure might be inflated because many funds may be trying to tap the same capital sources, the report said. Based on individual transactions, the most common deal size sought was between $20m and $50m.
However, the report revealed that interest in the Mena real estate market remains limited to investors located within the region due to a number of mitigating factors. These include unrealistic pricing, lack of suitable investment grade products, regional economic and political uncertainty, and lack of transparency with investment offerings with distribution constrained to a small number of local buyers.
Respondents also indicated that they plan to invest up to $6bn in the real estate market over the next one year, but this figure might be inflated because many funds may be trying to tap the same capital sources, the report said. Based on individual transactions, the most common deal size sought was between $20m and $50m.
However, the report revealed that interest in the Mena real estate market remains limited to investors located within the region due to a number of mitigating factors. These include unrealistic pricing, lack of suitable investment grade products, regional economic and political uncertainty, and lack of transparency with investment offerings with distribution constrained to a small number of local buyers.
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