LOS ANGELES—Middle Eastern investors are expected to spend $180 billion in commercial real estate markets outside of their own region over the next decade, according to the latest research from global property advisor CBRE Group, Inc.

The major increase in flows of Middle Eastern capital into global markets is emerging from the extraordinary mismatch between the lack of institutional real estate in domestic markets and the huge spending power concentrated in the region. Europe is the preferred target with 80% of the $180 billion (around $145 billion) targeted for the region over the next 10 years. Close to $85 billion will flow into the UK, with $60 billion directed at continental Europe. France, Germany, Italy and Spain are among the key target markets.

Global real estate markets have seen significant inflow of Middle Eastern capital with $45 billion invested between 2007 and the end of 2013 – seven times the reported activity in its home market. With $20 billion invested outside their home region in commercial property in the last two years alone – there is strong evidence that Middle Eastern players are increasing their interest and investment allocations to direct real estate.