A Twist in the Tale
Like the chicken and the egg, it’s hard to know which came first — the unprecedented demand for real estate funds or the unprecedented supply of real estate funds. No matter which came first, however, during the past few years Europe has seen an exponential growth in the real estate marketplace, with both capital and places to put that capital expanding at a record pace.
According to Jones Lang LaSalle, direct investment into real estate in Europe reached record levels in 2006, with total transaction volumes of €242 billion for the full year, up 39 percent on 2005. This number represented the biggest volume increase (€68 billion year on year) ever recorded. The record pace continued through the first half of 2007, with total direct real estate investment transactions in Europe reaching a new high of €120.7 billion for the half year, a 9 p