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Middle East investors look at logistics, data centres & healthcare investment in 2021

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Survey finds that private capital is undeterred by the COVID-19 pandemic as Middle East investors eye logistics, data centres & healthcare investment

Logistics, data centres, and healthcare sectors are expected to attract Middle East investors in 2021.

This according to Knight Frank’s Wealth Report 2021, which analyses the investment habits of the world’s ultra-high-net-worth individuals ((UHNWIs).

PRIVATE CAPITAL UNDETERRED

The 2021 edition of the report revealed, that despite rumours of a sluggish commercial sector, private capital has been undeterred by the Covid-19 pandemic with investors continuing to invest in commercial real estate around the world, with the volume of private capital invested globally sitting at USD 232 billion - 9% above the ten-year average, albeit down on 2019 levels.

MIDDLE EAST INVESTORS LOOK AT LOGISTICS, DATA CENTRES, HEALTHCARE SECTORS

In 2021, UHNWIs will be looking at the commercial sector, while in the Middle East, Knight Frank found that UHNWIs are expected to turn their attention towards the logistics, data centres, healthcare and residential private rented sectors.

According to the survey, 33% of Middle East respondents will be looking at the logistics sector in 2021, 25% will be looking at the healthcare sector, 23% at data centres, and 33% at residential private rented sector (PRS). Also garnering Middle East investment interest in 2021 are the industrial and development of land sectors, with 19% and 23% (respectively) of respondents looking at this sector in 2021.

HealthcareLogisticsDatacentre

GLOBAL DRIVERS

“There are a number of drivers set to shape markets throughout 2021 – the move to safe havens – large, relatively liquid, transparent markets should continue to attract global investment; global travel disruptions also provide opportunity for private investors to leverage understanding and ties to more local markets, which under usual circumstances might face larger competition for assets by institutional investors; ESG – something private investors cannot afford to ignore and the rise of data centres – where there is huge potential for investment opportunities,” said Victoria Ormond, Capital Markets Research Partner at Knight Frank.

 

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