EUROPE - Good performance, improving transparency and more liquidity boosted European direct real estate investment to e95.6bn in 2004, according to Jones Lang LaSalle.
The figure was 7% higher than in 2003 and up 50% from 2000, the firm said. Annual cross-border investment stabilised at e40.7bn in 2004, almost 70% above the level recorded in 2000.
Tony Horrell, CEO of European capital markets at Jones Lang LaSalle, commented: “Expectations of improved market fundamentals and good performance relative to other asset classes will maintain a strong weight of equity and debt seeking to be invested in the sector, while the globalisation of real estate investment volumes in 2005 will at least match 2004 levels, with a real possibility that the total will exceed the e100bn mark.”
He added: “The prospects for Europe’s real estate capital markets over the medium term appear to be positive with new sources of overseas capital targeting the region and the availability of debt remaining good.
“REIT introductions in Germany and the UK will drive further investment activity as newly converted funds make strategic adjustments to their real estate portfolios and owner-occupiers benefit from the opportunity to offload real estate from their balance sheets.”
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