Mena real estate 'will focus on logistics sector'
Manama, December 13, 2010
Real estate markets across Mena region will see a significant shift in emphasis over the next few years, with far greater attention being focused on the light industrial and logistics market, a report said.
This is consistent with governments' initiatives to expand the volume of trade which forms an integral component of efforts to diversify the region's economic base from the oil and gas sector, according to real estate advisory firm Jones Lang LaSalle Mena's 2010 House View report.
'Light industrial and logistics will be one of the best performing sectors of the real estate market across Mena over the next few years,' said research head Craig Plumb.
'This sector has not witnessed the same level of speculative construction as the residential, commercial and hotel sectors of the market.
'There remains strong underlying demand for quality light industrial and logistics units.
'This demand will be enhanced by continued investment in major new transport infrastructure including sea ports, airports and important new rail initiatives across the GCC.'
There has been increased interest in this sector from a range of regional and international investors and developers over the past two years.
Despite the difficulties in accessing this market, Jones Lang LaSalle expects this interest to be reflected in higher levels of sales activity in this emerging class.
'Investor interest is likely to be strongest for those properties securely leased to major international occupiers on long-term leases,' the report adds.
The light industrial and logistics market offers more opportunities for investors looking for secure, long-term income producing assets than other sectors of the real estate market.-TradeArabia News Service