Real Estate in the Middle East is often considered an essential method of preserving and increasing wealth. Such is the diversity of and complex nature of the Middle East’s economic strategy, as well as the range of real estate available it’s sometimes difficult to understand the performance of the sector across the region.
Thanks to a series of reports, namely the Knight Frank Wealth Report 2019, we’ve been able to gain some insight into this for you.
According to the report, Ultra-High net worth individuals based in the region, have increased their investments in real estate, despite fluctuating economies across the region, thanks in part to the continued strength in the US dollar.
More specifically the Attitudes Survey conducted showed that 29% of the Ultra-High net worth individuals increased their property portfolios in 2018.
According to the same report, estimated investment into commercial property exceeded $6billion, with a large proportion being invested in the UK. Outside of investment in the Middle East, London remains, as ever a top location as well as other European cities such as Berlin, Germany.
Today, these are prominent in the investment portfolios of Middle Eastern private billionaires, accounting for 23 percent and 15 percent respectively.
Outside of the Ultra-High net worth investors, a strong growing in middle income families from across the globe, seek to make investments in property in the region.
Whilst the Middle East and Europe can be considered culturally different; strong comparisons can be made, particularly in respect of the diversification of residents as well as increasing levels of global tourism. Such is the ease of which to travel across both regions for residents of both regions, investment in real estate from both sides is also made easier.
Thanks to the tax-free income available to be earned by expatriates in the region, a common factor can be found in those seeking to purchase their own property as opposed to renting as they seek a long-term base in the region. In addition, thanks to partnerships between real estate companies and financial institutions, such as our partnership with BisB.
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