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ME healthcare real estate 'in big demand'

DUBAI, January 25, 2016

The demand for Middle Eastern healthcare real estate is on the rise as local and international medical groups embark on a regional expansion drive, said a report.

With local and international practices expanding across the GCC region, the importance of gaining the right real estate advice is paramount to the feasibility of a project, according to property expert Knight Frank on the sidelines of Arab Health expo which opened on Monday.

The event, being hosted in DIFC, Dubai will see exhibitors representing 4,000 companies from over 100 countries, highlighting interest from the industry in the region.

‘‘Rising life expectancies, rapidly growing populations and per capita incomes, a high incidence of lifestyle-related diseases, and ambitious medical infrastructure projects are driving health care industry growth in the Middle East,’’ revealed Matthew Dadd, a partner at Knight Frank.

‘‘Real estate typically represents 40 per cent of a hospital’s balance sheet - the third largest expense on the income statement and all too often, healthcare real estate is an untapped asset,’’ stated Dadd.

With the growth in medical tourism and the focus on domestic Arab Health issues, Knight Frank is witnessing an increase in enquiries for real estate to accommodate incoming providers in this sector, he added.

There are numerous medical ‘clusters’ in the Gulf such as DHCC, Dubai and Dilmunia, Bahrain (u/c), as well as Mubadala Healthcare’s venture with the Cleveland Clinic in Abu Dhabi, stated Dadd.

Knight Frank pointed out that the Gulf region had great potential and offered solid growth opportunities for the resident population and for medical tourism.

An important trend is the single destination for multiple types of medical care, it stated.

Multi-speciality locations will often include medical, office and lifestyle solutions. The purpose of which is to make it more appropriate and enjoyable for customers, noted Dadd.

It is not just large scale projects and global brands looking at entering the Middle Eastern markets, but from smaller clinics, dentists to physiotherapists and specialist diagnostic centres, he added.-TradeArabia News Service
 




Tags: Middle East | real estate | Healthcare | Knight Frank |

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