Mideast sovereign funds slash property buys amid oil price fall
Dubai
MIDDLE East sovereign wealth funds (SWFs) cut their new investments in real estate in the rest of the world by almost a third last year because of the plunge of oil prices, consultants CBRE estimated.
Outbound property investment by the SWFs, the vast majority of which are from the Gulf Arab oil exporters, dropped 31 per cent to US$5.84 billion in 2014 from US$8.45 billion in 2013, CBRE wrote in a report on Tuesday. "This reflects more cautious behaviour from natural resource-based SWFs in light of weaker oil pricing," CBRE said. "The effect might be even stronger in 2015 and in the next couple of years after." A large proportion of the investment is in Europe.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Don’t count on the possibility of extending the land lease on a private home
Real estate players markedly more pessimistic on prime residential, office, business park sectors in Q1
Australia home prices continue to climb, Sydney back at record high
US homebuyers are starting to revolt over steep prices
Global banks start targeting a new breed of real estate risk
Skywaters Residences unit sold for S$47.34 million or S$6,100 psf, marking new record for 99-year projects