Europe's Leading Markets Still Magnetizing Investment Capital
Bloomberg reports: Despite all of Europe and the UK’s recent challenges both economic and sociopolitical, commercial real estate investors are still cutting deals for once-in-a-career deals in the region’s leading global cities. Bloomberg recently cited Real Capital Analytics data to state that property sales in the Paris metro jumped by 38 percent between the first halves of 2010 and 2011, while the reliable cities of Frankfurt and Stockholm pushed Germany and the Nordic nations up by 45 percent and 61 percent, respectively, over the same year-over-year period.
Though prices for trophy properties in London, Paris, and Stockholm are sky-high compared to just two years ago, Bloomberg cited RREEF Global Chief Pierre Cherki to explain investors’ continued interest in Europe’s best properties and markets: “For investors with a 10 to 15-year horizon, deals still make sense” because of attractive cash flows and some scope for higher rents and values.”
Bloomberg also quoted RCA Managing Director Dan Fasulo as stating that he believes the primary markets of Europe still have some ways to go in their spectacular recovery. As squeamish investors watch, “The latest declines in stock prices and bond yields…The real investment momentum is in those countries viewed as a place of stability. There’s a huge pool of capital out there just focused on core real-estate markets.”
View the full article on Bloomberg: Europe's Leading Markets Still Magnetizing Investment Capital
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Posted by: Nina Turner