Beyond the negative headlines: Despite Brexit and euro zone uncertainty, why are overseas investors buying European commercial real estate?
Despite economic and political turbulence, European city destinations dominated the league table of the world’s cities for inward investment in 2018.
According to CBRE, London was ranked at the top of the table, with Amsterdam, Madrid, Berlin and Helsinki all making it into the top 10 positions. Beyond the negative news headlines coming out of Europe, it is therefore clear that there are opportunities for commercial property investors — if they dig deep enough. But, with increasing political and economic headwinds coming into play, how do investors ensure good returns on their investment?
Cross-border investment has played a major role in the European commercial real estate market, with foreign investors providing close to a half of investment funds in Europe last year. Hong Kong, South Korea and Singapore have been major investors, while the US is still very active. Examples of major deals include Hong Kong investors purchasing London assets, with CK Asset Holding