Jones Lang LaSalle identifies Dubai as major source of Global Real Estate Capital; Middle East overseas investment volumes up in H1 2006

Jones Lang LaSalle identifies Dubai as major source of Global Real Estate Capital; Middle East overseas investment volumes up in H1 2006
Jones Lang LaSalle (NYSE: JLL), the leading global real estate services and money management firm, identifies the Gulf Cooperative Council (GCC) region as a major source of global capital against a backdrop of the rising investment by Middle Eastern investors in international real estate markets.
United Arab Emirates: Monday, October 09 - 2006 at 14:43 PRESS RELEASE



Tony Horrell, CEO of the International Capital Group at Jones Lang LaSalle


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The announcement means Dubai will join other leading global financial centres such as London, New York, Hong Kong and Sydney. According to Jones Lang LaSalle's latest Global Real Estate Capital Report, 'Record Volumes, Record Globalisation', direct real estate investment totalled US$290 billion in the first half of 2006, up 30 per cent on H1 2005. According to Jones Lang LaSalle, 2006 is on target to be another record year as total transactions approach US$600 billion.

Jones Lang LaSalle, which recently announced its strategic entry into the Arabian Gulf regional market through the acquisition of Dubai-based RSP Group, will enhance its focus in the region as part of its strategy to unlock the potential of the capital-rich region's investment in real estate globally. Jones Lang LaSalle's focus on global capital in the region will be spearheaded from Dubai, with the emirate's potential placed on par with the other major capital exporting countries in the world.

Tony Horrell, CEO of the International Capital Group at Jones Lang LaSalle, visiting the region said: 'Dubai with its dynamism in pursuing significant investments within the Emirate and in global assets has emerged as one of the leading players in the real estate market across the world. Jones Lang LaSalle's International Capital Group believes that the Middle East and North Africa (MENA) region as a whole has the potential to play an enhanced role in global markets. Jones Lang LaSalle, which has an integrated global platform with offices in over 125 cities in 70 countries will help Middle Eastern investors tap the right opportunities to maximise returns.'

In its new Global Real Estate Capital Report, Jones Lang LaSalle highlights the rising role of Middle Eastern funds in investments across various international markets and property types.

Horrell commented: 'Thanks to the record high oil prices and diversification of the regional economies, Middle Eastern investors have continued to invest significant volumes outside their home region. After a few years of absence, Middle Eastern funds are again investing heavily in the US, followed by Europe.'

According to the Jones Lang LaSalle report, almost US$6 billion of Middle Eastern money was invested outside of the Middle Eastern region in the first half of 2006, with US$4 billion flowing into the USA and US$2 billion into Europe, principally to the UK. Middle Eastern inter-regional investment in the first half of 2006 accounted for more than half of the total Middle Eastern inter-regional investments in the whole year of 2005, which stood at US$9.9 billion. Office investments dominated while large investments were also made in hotel and retail sectors. Almost half of the total investments in the US were in New York City.

'Real estate markets continue to evolve into global asset class and cross-border investments represent 44 per cent of the total volumes in H1 2006, up from 34 per cent in the previous corresponding period. The globalisation of real estate markets is taking place at a rapid pace with inter-regional investments now representing 31 per cent of the total volumes. In Europe, for instance, Middle Eastern investors were noted for their presence along with US and Australian investors,' Horrell added.

Blair Hagkull, Managing Director of Jones Lang LaSalle Middle East, commented:

'Identifying Dubai as one of the global capital centres reinforces the commitment of Jones Lang LaSalle to the region and indicates our keenness to provide significant and strategic investment avenues to Middle Eastern investors. Real estate is a favoured asset class among regional investors and Jones Lang LaSalle with its leading presence in the global markets is ideally placed to bring across-the-board real estate investment advice to the region.'



In line with its plans for the region, Jones Lang LaSalle is currently holding its annual meeting of the International Capital Group in Dubai, with capital markets directors from Europe, America, Australasia and Asia Pacific working on collaborative ideas to work together with local companies to source international investment opportunities.

'It is estimated that oil and gas revenues in the Gulf region are now to the tune of US$320 billion per annum. The robust liquidity scenario was reflected in the rising trade volumes of local stock markets prior to a recent correction. Simultaneously, investments in overseas real estate asset class have also gone up. In H1 2006, Middle East funds invested US$4 billion in New York offices compared to US$2.4 billion in the whole of 2005. Investment in London offices and hotels was US$1.1 billion in the first half of this year compared to US$5.9 billion in full year 2005. Significant investments were also made in office space and hotels in Paris and Germany, indicating a healthy appetitive for global real estate investments,' Horrell added.