The consequences of the troubles in eastern Ukraine are going well beyond that country’s borders and are having an impact both on world politics and on the international financial markets

The real estate investment industry forges ahead and does what it does, seemingly oblivious to the minutiae of European politics; but not oblivious to the continent’s varying underlying economic fundamentals.

London continues to be the most active market in Europe, with investors eager to acquire prime property. In the second quarter, central London property investment totalled £3.38 billion (€4.24 billion), according to Cushman & Wakefield.

The logistics sector continues to be very popular with investors, and a number of high-profile deals have been wrapped up in the sector. According to Colliers International, the European logistics market is characterised by high demand for, and low availability of, high-quality space.

Institutional capital continues to favour large real estate funds sponsored by proven investment managers. Funds that closed during the first half of 2014 totalled $39.4 billion (€30.0 billion), according to the Institutional Real Estate FundTracker database.

A survey of 167 European real estate investors carried out for Union Investment by Ipsos has found that investors have gained confidence from the improving economic situation across Europe and are now prepared to consider adapting their investment strategy by moving up the risk curve and exploiting opportunities in the core-plus and value-add space.

As the summer draws to a close, Rockspring Property Investment Managers has announced the third close for its Rockspring UK Value II fund, bringing total equity commitments to £150 million (€188 million).

Lille, the fourth largest metropolitan area in France, is located in the north of the country close to the border with Belgium. Lille’s investment market is predominantly driven by domestic investors, most of whom target prime office and retail space.

For centuries, coastal cities have been vibrant centres of economic growth. And this vibrancy has always been a magnet for capital, with real estate investors consistently gravitating toward markets on the water. But more recently, growing awareness about the wrath of Mother Nature — increasingly damaging hurricanes, flooding rivers and sinking land masses — is beginning to cause concern.