VIDEO: Middle East capital looking across risk spectrum in London

Middle Eastern capital is looking right across the risk spectrum in the London real estate market from commercial and residential development to stabilised investments in the retail and office sectors.

'Some sovereign wealth funds prefer stabilised office investments and some such as Abu Dhabi Investment Authority (ADIA) are looking at the residential private rental sector,' said Richard Womack, executive director of Central London capital markets at CBRE.

Womack was speaking to PropertyEU about CBRE's In & Out research paper on capital flows from the Middle East region into global real estate.

At present, London commands the bulk of the Middle Eastern capital inflows, accounting for 44% between 2012-2013, followed by Paris (15%), Milan (4%), Lyon (3%), Düsseldorf (1%), Barcelona (1%) and Berlin (1%).

While CBRE suggests the balance between the UK and continental Europe will change, Womack said London will remain a top destination. 'I expect that capital (flows into the UK) to be sustainable over the next few years and over the next decade. It has been pretty consistent if you look at the statistics going back over the last 10 years.'

CLICK HERE to watch this and other interviews about the In & Out research report (PDF).