Gulf Arab and Middle Eastern investment in US real estate will continue to be steady in the medium and long-term after bouncing back from declines caused by the Covid-19 pandemic, according to experts.
According to statistics compiled by commercial real estate and investment management firm JLL, cross-border inbound investment stemming from Middle Eastern investors averaged $2.2 billion between 2017 and 2019.
Knight Frank says investment into the US from the Middle East has more than doubled in the past year, accounting for 15.4% of all global deals
Additionally, the statistics indicate that the proportion of Middle Eastern activity in US buyer pools has increased gradually over the course of the property cycle, comprising 5.6 percent of acquisition volume from 2010 to 2014, followed by an increased 6.4 percent from 2015 to 2019.
Total Arab investment, however, remains small when compared to other capital sources, comprising a total of 4.2 percent of the acquisition volume since 2017. European and Asian capital, by comparison, makes up just under 25 percent of the buyer pool, while Canadian investors make up nearly half.
The data from JLL Research, however, shows that compared to their international peers, Gulf investors tend to focus on larger, higher-profile single asset acquisitions. The average single asset transaction for Arabian Gulf investors, for example, was $80 million, compared to $49 million from other global capital