Global demand for European commercial property is strong. In USD terms, global investment into Europe rose 35.5 per cent in 2014 while European cross border investment within the region rose 14.4 per cent and domestic investment was up just 1.4 per cent.
The UK, Germany and France took three quarters ofs all global money in Europe, but Spain is now drawing capital from all global regions – the only country other than the UK to do so. Italy has outgrown the big guns and was number four in Europe for global capital last year.
European property faces a further 1-2 year window of attractive relative pricing, predicts Cushman & Wakefield, particularly from assets enjoying the start of an occupational upturn, and with low relative risk and diversification gains on offer, high demand will be sustained.
“On balance, the macro drivers for demand are more positive for real estate than for bonds and indeed the relative yield from property should continue to draw in both short and long-term investment interest,” reads the agency’s report, The Allure of Europe.
“What is more, whilst quality supply is restricted, overall choice for investors is increasing as banks deleverage, portfolios are turned and development comes back to the agenda. This heightened availability in a stabilizing economy will continue to underpin activity for domestic and foreign buyers, with potential for the market to deliver a new peak for trading in excess of the previous record of €275bn.”
Source:: The Movechannel