Conflicting reports on investor confidence and preference have emerged following Brexit, with some analysts pointing to the “bargains” available in the UK’s real estate sector and the likelihood that foreign investors will flock to take advantage of these opportunities. However, other analysts highlight the current instability of the UK housing market and the relative attractiveness of other, equally well-established but more stable markets – especially the US.
The US has traditionally been considered a safe haven for foreign investment. In 2015, the US multifamily sector attracted 16.3 billion USD in foreign investment, according to data provided by Real Capital Analytics (RCA). According to analysts at data firm Axiometrics, “Investors from the Middle East, who have long favoured Longon, could be ready for a bigger bite of the Big Apple if they see profitability falling in Great Britain.”
Barrons foresees a “blast of volatility for US commercial real estate”, which may lower overall private US commercial real estate prices by up to 5 percent over the next 12 months. This is set to attract foreign capital. Foreign private investment volume rose from 22 billion USD in 2012 to 84 billion USD in 2015, and foreign investor interest in US commercial real estate remains high.
The perception of US real estate as a sector offering safe, predictable yields was barely shaken even by the 2008 global financial crisis, and so it is perhaps unsurprising that it seems to have been unaffected by recent global macroeconomic headwinds.
Demand for US real estate remains high among Middle Eastern investors, who are seeking not only commercial real estate in primary markets, but also more niche property assets in secondary or gateway cities.
Naseba has spent over a decade building a network of contacts with investors based around the world – including the Middle East, and we are currently sourcing real estate and development projects in the US on behalf of these investors.
On October 17th, 2016, we will be organising a private investor meeting in Riyadh to introduce pre-screened Middle Eastern investors to pre-qualified US real estate investment opportunities.
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To learn more, contact:
Naseba investor introduction
+971 4 455 7954