Europe has become the world's most active real estate investment market, according to a report issued by global advisor Jones Lang LaSalle. European investment volumes in property rose 44% to $305 bn (EUR 232 bn) in 2006, of which 61% cross-border transactions. Inter-regional investment rose from 34% to 39% of total investment year-on-year.
Europe has become the world's most active real estate investment market, according to a report issued by global advisor Jones Lang LaSalle. European investment volumes in property rose 44% to $305 bn (EUR 232 bn) in 2006, of which 61% cross-border transactions. Inter-regional investment rose from 34% to 39% of total investment year-on-year.
The major global real estate story of 2006 was Germany, where global funds purchased 40% (by value) of all German commercial property traded. A combination of willing domestic sellers, aggressive cross-border investors, positive yield spreads and a recovering economy resulted in transactions increasing 140% to $62bn. The German market currently accounts for 20% of European volumes, up from 12% in 2005.
Another very active European country is France where the investment market grew by 70% to $30bn or up from 8% to 10% of European volumes. On the other hand, the UK market experienced a slow-down with investments decreasing from 37% to 33% of European volumes.