Global real estate investors are targeting London over any other European city, new research from CB Richard Ellis (CBRE) has revealed. The city attracted some 39 per cent of all the capital invested by non-European buyers in the continent's commercial property sector in 2010 and the first six months of 2011, the firm revealed. This contrasts with Paris - the next most popular location - which attracted just eight per cent of the total amount.
Dr Peter Damesick, Europe, Middle East and Africa chief economist at CBRE, commented: "London's attractions for global real estate investors reflect a powerful complex of attributes, including its status as a global financial centre [and] the size, depth and liquidity of its investment market." Other factors that make the city an attractive option for those buying commercial property are its beneficial lease structures and the transparency of the sector, he added.
The organisation also pointed out investors from all the major global regions ploughed their funds into London, increasing the number of sources from which international money flows into the marketplace. Investors from North America were most active in the European property sector, accounting for 55 per cent of the overall volume of capital, while those from Asia took up 21 per cent of the market and Middle Eastern investors held 18 per cent of the total.
In its Global Viewpoint for September, CBRE stated that there will be changes to the real estate investment market over the coming months, building on trends that are already emerging in the sector. Among them is an increased appetite for super-prime properties in locations considered to be "safe havens", as well as a shift towards assets and regions that are "either resilient in the face of weak demand: non-discretionary retail and multi-family housing, or through debt investment strategies". The firm added that investors aiming to receive higher returns could adopt the "classic refurb/release office play" in European markets that have a broad and mixed tenant base.
- Thursday 06 October 2011