Mideast investors lose interest in US real estate despite recent sales of landmark offices
Middle East investment real estate investment in the US is expected to be flat or down this year compared to a banner year in 2007. More than half way through the year, Mideast investors have shelled out $2.7 billion for U.S. assets, according to Real Estate Analytics Inc., a New York-based real-estate research firm. But at that pace, this year's total sales will likely fall far below last year's $8.2 billion in deals. Other countries have similarly pulled back their investment in U.S. real estate and the disruption in the credit markets has halted many deals. At midyear, sales of office buildings were just a third of last year's total through the first half. Retail property sales were down 62 percent; industrial sales, down by half; and apartment sales, down by 45 percent. Prices, especially in suburban markets, have started to slip, making many investors jittery about getting into a sliding market. And the economy, on uncertain footing, could hurt property occupancy rates and rents as tenants give back space or scrap expansion plans.
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