Investors should cash in on the different stages of the property cycles in the western world and the Middle East, Lanesborough Asset Management has urged. While the US and European markets are either falling or stagnating, the United Arab Emirates markets are exhibiting strong growth. 'The conditions for profit taking could not be more opportunistic in the East and the West, as such property investors should invest in both falling and rising property markets as an investment strategy,' Lanesborough said.
Investors should cash in on the different stages of the property cycles in the western world and the Middle East, Lanesborough Asset Management has urged. While the US and European markets are either falling or stagnating, the United Arab Emirates markets are exhibiting strong growth. 'The conditions for profit taking could not be more opportunistic in the East and the West, as such property investors should invest in both falling and rising property markets as an investment strategy,' Lanesborough said.
While Western Europe and the US are heading for recession, the situation in the United Arab Emirates could not be more different. Chambers of Commerce data indicates Abu Dhabi's GDP is expected to grow by over 10% per year in 2008. Due to flourishing non-oil related sectors the economy is set to grow fourfold by 2025, supporting a property market that is seeing growth of 10-20% per year. A shortage of suitable property is keeping rental levels up.
Lanesborough noted that opportunities for funds are springing up in the US and Europe to purchase distressed assets cheaply. 'Property vulture funds are already focusing on North America and will no doubt extend their remit to Western Europe,' the company said.
