Strong growth of GCC economies fuels global real estate investments

Strong growth of GCC economies fuels global real estate investments

- JLL's ‘The Resurgence of Outbound Real Estate Investment from the GCC’ report underlines key trends driving global real estate investment

Dubai: With economies in the Gulf Cooperation Council (GCC) expected to be relative global outperformers in 2022 and 2023, regional investors' appetite for global real estate investment opportunities is likely to grow, according to JLL’s latest ‘The Resurgence of Outbound Real Estate Investment from the GCC’ report.

The challenges posed by spiraling inflation, elevated energy costs, and hawkish monetary policy are impacting investor sentiment globally. This is not only triggering delayed decision-making but also weakening liquidity in international real estate markets, further painting an uncertain global outlook.

However, the Middle East, in particular the GCC, is bucking this trend, as the region's relatively robust economic conditions have helped strengthen market confidence as well as enhance appetite for discounted investment opportunities abroad.

In addition, the strong recovery in oil prices from mid-2020 has also served as an impetus for increased consumer confidence and buoyant investor sentiment in the region, leading to higher levels of capital being deployed into international real estate.

Fadi Moussalli, Executive Director, International Capital Coverage (ICC), said: “While the healthy momentum of global real estate investment by GCC’s state-owned entities and sovereign