Korean investors spent US$6.88 billion on European property in first half 2019, the highest figure on record, according to Savills. The activity of Korean investors is also increasing in Poland.

“As the core gateway cities of Europe continue to evidence compression of prime yields and an ever-competitive domestic investment market, Korean investors have started exploring more creative strategies through which to achieve their required cash-on-cash returns,” said Jae Yoon, senior manager, outbound investment advisory, Savills Korea. “Whilst diversification into more peripheral markets and new asset classes goes some way to affording the means of fulfilling their key income return requirements, there is also a growing willingness amongst Korean investors to approach more innovative structures, including co-investment alongside seasoned European asset managers.”

Record volume of transactions equates to 10 percent of all cross-border commercial real estate deals in