Record Year Foreseen For European Real Estate Investment

by Phillip Morton, Investors Offshore.com

19 August 2004

According the latest Jones Lang LaSalle European Capital Markets Bulletin, a record level of European direct property investment is predicted for 2004, around 10% more than in 2003.

During the first half of 2004 investment volume reached €41.3 billion, a 30% increase on the same period in 2003 with buoyant investor sentiment and an improving European economy set to drive investment levels to record levels this year, the report states.

The report found that low interest rates were one of the major drivers of growth in the European market. It also forecast that new investors will be attracted by improving medium term rental growth and return prospects in the office sector and the development of more indirect investments allowing access to real estate investment.

Meanwhile, in the Asia Pacific region, the report found that assets totalling US$2.4 billion were bought by foreign investors across the region last year.

South Korea saw the largest share of this (26.4%), followed by Australia (23.9%), Tokyo (14.1%) Hong Kong (10%) and Singapore (8.2%).

"Ten years ago, foreign investment in the Asia Pacific was minimal,” observed Marc Hurfeld, associate director of Asian Capital Markets at Jones Lang LaSalle, adding:

“Major interest is rapidly generating now due to the region's improving economies, increasing transparency levels, falling regulatory barriers and the increasing globalisation of the commercial property market.”

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