Real Estate Worldwide not all Doom and Gloom

GLOBAL PROPERTY MARKET SYNOPSIS

US Real Estate Market Momentum in retail property deals across the United States plummeted some 40 fall as apposed to 20 to 2 for the same period. Industrial property fared best with a 36% slide in transactions.

From an investor's perspective, a close monitoring of these movements will bring forth opportunistic deals, particularly stressed sales and institutional diversification of portfolios. Focus for the time being should be on niche properties like self-storage, medical offices and single-tenant offices, retail and industrial properties.

Self-storage thrives when people are on the move as is the case with the current housing market fall-out. Medical practitioners tend to be virtual fixtures in properties located close to hospitals and established networks with other medical practitioners while single-tenant properties invariable have long term AAA tenants on triple net leases.

In essence, amongst all the doom and gloom, there exists opportunity. Seek them and partner in syndicates if you lack capacity to tackle them single handed.

UK Property Market The UK property market is showing signs of strong activity with billions lying on its doorstep. With oil prices at current levels having rapidly escalated in the past year, Gulf States have bank vaults loaded to capacity. With most top executives and royalty having been educated in the UK, they are familiar with this playground and have a strong affinity with the cooler conditions by comparison to their heat waves. The last couple of weeks alone have seen ?700m in Arabian investment, evidence of an extended investment program following on last year's ?8.9 billion on office, retail and industrial property investments from the Middle-East. Furthermore, Arabian banks are actively encouraging clients to look at the UK property market, convinced of good value after recent declines.

Whilst we still expect some downward trend, as a bold investor, you would want to act before the door opens....

UAE Property Market Gulf Cooperation Council (GCC) retail property is the fastest growing in the world, expected to have grown 7 fold in the decade to 2010. Driven extensively by property market collapses globally and excessive high oil prices generating vast capital reserves, the boom in retail construction has made it an increasingly attractive market for local and international brands. Foreign investment in Dubai was severely limited with freehold open only to designated developments (the rest leasehold), the authorities are seriously considering opening the market to foreign investment.

Our view is that whilst we see further growth in this market, it's tough, expensive and suitable only for institutional investors, maybe large private funds. We feel opportunities on the horizon in South Africa, UK and Eastern Europe are generally better suited to investors.

Dunbar Property Group is an internationally represented specialist in Commercial & Industrial Property.www.dunbar.co.za