Direct investment in commercial real estate
in Europe is expected to rise by 30 per cent in the coming year, with the market driven mainly by an increase in the number of cross-border buyers.
Jones Lang LaSalle's European Capital Markets Bulletin reports that a shortage of prime buildings and improving rental prospects will lead to investors taking higher risks in pursuit of better returns.
"A shortage of available core product in major Western markets means we anticipate the investment momentum of 2010 in Central Europe and Nordics to accelerate in 2011," Richard Bloxam, director EMEA Capital Markets at the firm, said.
Mr Bloxam added that Europe's two largest emerging markets, Russia and Turkey, will also witness a rise in commercial property investment
activity this year.
Meanwhile, Jones Lang LaSalle forecasts that there will be an increase in capital values across the region. The company explained that this will be primarily driven by rising rents.
- Wednesday 09 March 2011