Although some analysts are predicting that the housing market still has farther to fall before it makes any sort of true recovery, a Bahrain company is not waiting to sink assets into the U.S. real estate market. Fitch is projecting that home prices will fall another 13 percent in the coming months thanks to “high unemployment, excess inventory and restrictive lending standards,”[1] but Investcorp, an alternative investment bank based in Bahrain with offices in New York and London has just closed on properties in Long Beach, California, taking its yearly total of investments in the U.S. market to around $300 million[2]. The exact price paid for the California office complex was not disclosed. The company also bought Florida and Georgia commercial properties in the past year, and believes that “they complement our growing mix of investments selected for their strong and stable tenant histories…and above-market cash yields,” explained the company’s president for Gulf business Mohammed Al Shroogi. Shroogi added that the company’s recent acquisitions “look especially attractive given the forecast period of low interest rates and economic conditions we face today.”

Are you buying today, or waiting for prices to fall farther?

Thank you for reading the Bryan Ellis Real Estate Letter!

Your comments and questions are welcomed below.


[1] http://www.dsnews.com/articles/fitch-sees-further-price-declines-on-horizon-2011-11-18

[2] http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=318096