GLOBAL - Institutional property investors are being pushed into new markets as far abroad as Asia and Africa as demand far outstrips supply in traditional property markets, F&C has claimed.
Paul Herrington, head of property investment at F&C Asset Management, said property investments in London, Paris and Madrid were witnessing yield compression and continually increasing investment volumes in a limited number of new projects.
"As a result, European investors are starting to look increasingly outside those areas, either in the same countries or going further East to Central and Eastern Europe, or even beyond – to Japan, India, China and even Africa."
Herrington said there had already been increased volumes of European cross-border property investment over the past couple of years.
"The enlargement of the European Union and the improvements made by countries of Eastern Europe in making the regulatory environments more clear, fair and consistent and market data more accurate and comprehensive have all contributed to the creation of a larger level playing field for European property investors", said Herrington.
We are also seeing heightened interest in new product classes, such as hotels, student housing and car showrooms and investors generally are starting to look more closely at development opportunities both in the UK and abroad."
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