Germany and Central and Eastern Europe are the most attractive markets for investors to purchase real estate in this year.
This is according to CB Richard Ellis (CBRE), which noted that there has been a shift in buyer preferences in the past year.
Within Europe, CBRE states that Germany is seen as the country with the greatest potential by 32 per cent of investors, a sharp increase compared to 2010.
In addition, around a quarter of investors have Central and Eastern Europe earmarked as their top investment target
this year, up from 16 per cent last year.
The retail sector has overtaken offices as most the most attractive for investment, the consultancy added.
John Welham, head of European retail investment at the firm, said: "Prime retail property has recovered in value in much the same way as office property, so that the more economically stable markets have seen the greatest recovery. Prime shopping centres in Germany, for example, are now trading at yields very close to the peak of the market in 2006."
- Friday 11 March 2011