Investment in Western European Property Rises

The level of investment pumped into property markets in western Europe increased by 11 per cent between the first half of 2012 and the same six-month period in 2011...

The level of investment pumped into property markets in western Europe increased by 11 per cent between the first half of 2012 and the same six-month period in 2011. This is according to research conducted by BNP Paribas Real Estate, which noted a total of EUR 42.8 billion (GBP 33.4 billion) was ploughed into real estate assets in this part of the continent on a rolling year basis in the second quarter of this year.

Central London saw its investment volume climb by 32 per cent in the six months from January to June, compared to the same period a year earlier, while central Paris also experienced a 38 per cent rise in the amount of money its real estate sector attracted. However, Andrew Cruickshank, international investment director at the firm, said that despite the positive figures, a slowdown in investment activity is anticipated over the course of 2012. "Even though investors' interest in western European real estate assets remains strong, the weaker occupier market, the decline in economic growth and the lack of resolution of the sovereign debt crisis is encouraging them to take a cautious approach," he asserted.

The BNP Paribas Real Estate data revealed Munich was one of the most resilient markets in the region, with turnover nearly doubling in the German city. This can be attributed, in part, to the acquisition of "large trophy assets" that helped boost investment volumes, the firm stated. A report published earlier this month by Savills also highlighted Munich's robust property investment sector. According to the organisation, investment in the city hit approximately EUR 980 million, with retail assets the most popular, accounting for 71 per cent of all transactions. Savills highlighted four deals in particular that boosted the amount spent on retail premises - these were the disposals of Maximilianhoefe, PasingArcaden, Pasinger Hofgaerten and VIVASuedseite. Deals for offices comprised a further 23 per cent of the total investment volume. 

- Wednesday 01 August 2012

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