ISFIN releases trends on cross-border investments from Islamic investors

Speaking at the MIPIM today, Laurent Marliere, CEO of ISFIN revealed the trends in real estate investments emanating from Islamic investors.

2013 has seen a significant growth in the volume of real estate global capital flows that is set to continue this year.

Outside the Islamic markets, the United Kingdom (primarly London), the U.S. and Western Europe (with France taking a large share) are leading the way in terms of investments. The European market is heavily influenced by Middle Eastern groups. CIS investors from Kazhakstan, Azerbaidjan,… (often depicted as « Russian ») are very much present in these inbound markets as well,

Investors are looking at opportunities outside the office and retail space with more deals done in hotels, industrial, logistics and mixed-use schemes.

We see a growing activity in the health sector with investments directed toward hospitals, says Marliere. Most of these transactions are linked to a more sophisticated agreement which includes transfer of knowledge and no just the bricks, he adds !

Within the Islamic markets, Turkey is a well sought destinations for FDI coming from Family offices.

Asian institutions and family offices are back into Dubai, a market witnessing regulatory incentives. The government of Dubai has introduced mortgage mesaures and tax incentives to offer more sustainable rental capital values.

The Expo 2020 is estimated to peak to 20 Million people, doubling the scale for visitors.  A real estate bubble there is still plausible.

Dubai is a rather symbolic residential market. The quality of the infrastructure in Dubai is 5 years in advance on other neighbouring Gulf countries.

In terms of booming residential and hotel markets, Marliere pinpoints the effect of airline carriers on the market. The UAE airlines attract people into the country (and the region) but are also a key component for the corporate market. Emirates & Etihad are two UAE carriers.

The fact that 550 long-courriers were bought during the GCC Aviation fair last year will have an impact on the real estate market as private investors. A similar combination is noticeable in Asian countries like Malaysia and Indonesia.

The MIPIM is the world’s largest real estate event. ISFIN is present with a delegation of professional partner firms from 15 countries.

ISFIN is the world’s leading platform of advisory firms specializing in Islamic Finance, investments from and to the Muslim world and the Halal industry. The alliance covers more than 65 jurisdictions around the world. ISFIN is composed by the most innovative and highly regarded independent advisory firms.

Contact Information:

Zineb BENSAID
Senior Consultant
Master in Competitive Intelligence
Telephone: + (32) 483 359 515

ZB@isfin.net 
www.isfin.net