The European Real Estate Investor Intentions Survey 2014 from CBRE has confirmed that investors are moving up the risk curve and away from the core, prime safe-haven properties that they have favoured in the years since the global financial crisis.
All eyes turn toward London. A lot. Property investors just cannot get enough of the United Kingdom’s dominant market.
New research from TIAA Henderson Real Estate tracks projected growth of retail warehouse space over the next five years in various European countries and compares that with the expected growth in retail spending over the same period.
Investors are getting into the swing of things again, and European property funds have been holding final closes and making large capital raises.
Rapid urbanisation and demographic changes will drive the global stock of institutional-grade real estate up from $29 trillion (€21 trillion) in 2012 to $45.3 trillion (€33 trillion) in 2020 and as high as $69 trillion (€50 trillion) in 2030.
Manchester, with a population of 512,000 inhabitants, is located in the south-central part of north-west England. When considering the Greater Manchester area, the population rises to 2.6 million inhabitants, making it the second most populous urban area in the United Kingdom after Greater London.
Liabilities — particularly unfunded liabilities — will keep any institutional investor awake at night, but sensible long-term planning and effective asset allocation is the path of the righteous — and prudent — investor.
Lately, there has been a noticeable increase in interest from investors, particularly US investors, for opportunistic real estate investment in Europe. But it is very important to differentiate between countries in Europe.
A growing number of American brands have moved into the expanding Nordic market in recent years, lured by the region’s economic stability and highly prosperous but relatively unexploited markets.
Bulgaria and Hungary, both leading destinations for foreign direct investment in central and eastern Europe, have been through a tough period. Both countries were hit hard by the economic recession and are now trying to establish stability on an economic as well as on a political level.
The next real estate downturn will come; we just don’t know when. Whether due to geopolitics or real estate fundamentals, the best thing we can do is be ready for it.