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Middle Eastern buyers invested a total of $14.1 bn (€13 bn) abroad in 2014, making the region the third-largest source of cross-regional capital globally, according to CBRE’s Middle East In and Out 2015 report.

Europe remains the preferred destination for Middle Eastern investors, attracting $10.2 bn in 2014.

In line with other investor groups, the year saw a major shift in their investment strategies, with activity growing across second-tier European locations, including Amsterdam, Frankfurt, Budapest and Madrid.

While still the most popular market, London received 32% of the total spend in 2014 compared to 45% in 2013, with Paris and New York growing their shares to 16% and 10% respectively. London and Paris were the only two markets to retain a top-five ranking in 2014.

Iryna Pylypchuk, director of global capital markets research at CBRE, commented: 'There was a fall in outbound capital from the region from $16.1 bn invested globally in 2013 to $14.1 bn last year. In part, this is a function of difficulty in accessing product, and the large lot sizes these buyers tend to invest in. However, looking ahead and in light of weaker oil pricing, real estate acquisitions by sovereign wealth funds are expected to slow further in 2015 and beyond.'

Historically, sovereign wealth funds have dominated Middle Eastern investor league tables – accounting for around 50% of international commercial real estate acquisitions in 2013. While still the largest single investor group, Middle Eastern high net worth individuals, the private sector and other collective vehicles played a more significant role in global real estate markets in 2014.

Pylypchuk added, 'In contrast to SWFs, lower oil prices may have triggered private capital to increase international allocations and speed up deployment faster than would have been the case otherwise. Our research clearly shows a greater allocation of investment to real estate and desire to diversify away from the home region. This has had a significant impact on Europe, where the combined investments of private wealth and equity funds from the Middle East grew by 49% year-on-year to $5.5 bn.'

Saudi Arabia is the fastest growing source of outbound Middle Eastern investment. Capital outflows from the Kingdom grew rapidly in 2014, with $2.3 bn invested versus nothing in 2013. Qatar was the largest source of Middle Eastern capital in 2014, with $4.9 bn invested.