Turbulence in the Asian markets in 2015 has encouraged global investors to look to Europe as a ‘safe haven’ for their capital, a report by JLL indicates.
Turbulence in the Asian markets in 2015 has encouraged global investors to look to Europe as a ‘safe haven’ for their capital, a report by JLL indicates.
Third-quarter European real estate volumes reached €59.3 bn, a 24% increase on the same period in 2014. Measured in US dollars the increase was a more modest 4%, reflecting the dip in the value of the euro over the summer.
Over the first three quarters of the year total investment volume across all EMEA markets was 19% ahead of the previous year's figure at €161 bn, JLL said.
Germany was the standout performer of the major markets, with a 79% increase in activity year-on-year over the third quarter to €13.5 bn. On figures for the year to date Germany was 46% ahead with an investment volume of €32 bn.
The UK recorded an 18% contraction in Q3 2015 to €18 bn, but remains the largest market with €60 bn invested in the year to date, up 11% against the same period in 2014.
The Benelux region also saw strong growth in Q3, with a 75% increase year-on-year, while the Nordics recorded a spectacular 146% rise in Q3 2015 and a 64% improvement on year-to-date performance.
'Since the start of 2015, commercial real estate investment in EMEA has remained strong with a 19% increase taking overall volumes to €162 bn,' said Richard Bloxam, Head of EMEA capital markets, JLL.
'The region has benefited from investors’ increased appetite for safe haven assets combined with plenty of liquidity looking for stable returns and with many deals still on the table we expect this positive, robust momentum to carry through from Q3 to the end of the year.'