Assetz® News » HOME | RSS Feed FEED | LIST ALL ARTICLES | ASSETZ HOMEPAGE
Investment Property News from Assetz

Assetz® Property News Service

Frustrated capital boosts EU property market, says NAI

24th August 2005 | back to article listings BACK    print this article PRINT

Soft economic activity and stock market growth is driving the European property investment market, as massive capital flows from open ended funds, opportunity funds, institutional investors and other collective investors search for asset outlets, says a report from NAI Europe, a US based commercial property agency.

NAI pointed particularly to German capital markets, dissatisfied with Euro-zone business opportunities, as the largest source of frustrated investment seeking high yield returns. With growth figures and market predictions hovering around 1.9 per cent, the current cash flow is likely to be sustained for some time, says the report.

"There is still a lot of money worldwide seeking product," David Perry, vice president of NAI Europe, told Expansion Management. "Property funds are buying fully leased assets, but there is a serious shortage of 'Class A' space."

"This is historically unusual but is fuelled by poor performance in the global stock markets," said Mr Perry. While the influx of joint venture capital may squeeze independent investors, the driven demand and pricing also provide plenty of opportunities.

While demand is high and growth remains strong, the European property market is not yet "bursting at the seams," says NIA, as the EU gradually expands its capacity. Despite the fact markets across Europe have been weak because of low vacancy rates, investment yields are improving.

He also pointed to European wide development projects, such as the one million feet of speculative new office space planned by the Welsh Investment Strategic Partnership for construction in Swansea, Newport and Treforest throughout the next decade, as proof of growth potential.

An additional report by PricewaterhouseCoopers has tipped Paris as the next big leader of European property investment growth as the London market slows, citing its diversity, low vacancy rates and rising office occupancy rates. Milan was rated second with London, as the most established market, third.

Demand had far from petered out in the established markets, however, said NAI.

"London has always out performed other European markets, but it keeps going up," said Mr Perry. "London is off the scale. Supply and demand there is enormous."

Traditional repositories of inward investment, such as Spain and France are honing their policies for tempting both private and corporate inward investment, with improved banking arrangements and targeted marketing.

And the rise of Eastern European property with EU accession was for from a threat to established market values, but would help sustain growth said NAI.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/2117.html. Alternatively, please see our full press release archive.

Assetz® is a UK and International Property Investment Specialist. Please visit our property sites shown below.

Assetz for Investors UK Assetz Hotels Assetz Homes Assetz International Assetz France Assetz Spain Assetz Cyprus Assetz Germany Assetz Portugal Assetz Ski Assetz Cape Verde Assetz USA Assetz Finance Assetz Fund Management

Accessing the news service

You can view all of the Assetz® UK, International and UK Property Investment Articles and News here.

We also provide an RSS Feed Feed of the news service, or you can view all articles. Click here to view more information on RSS readers and how they make reading online news more convenient.

eXTReMe Tracker