| Fuelled by the potential to make serious financial | | | | Although the UK property has one of the highest |
| gains in the overseas property market, direct | | | | investment volumes in Europe at €80 |
| investment into European real estate reached | | | | billion (£53 billion), this figure has remained |
| record levels last year. | | | | static since the previous year suggesting that the |
| Total transaction volumes reached €242 | | | | more dynamic markets, certainly in terms of |
| billion (£163 billion) for the year up 39 per | | | | investment flows, are to be found overseas. |
| cent on 2005 as a combination of high returns, | | | | Tony Horrell, CEO of european capital markets at |
| freeing up of investment markets and unilateral | | | | Jones Lang LaSalle, commented: "Investors in |
| economic growth boosted spending on the | | | | European real estate in the past couple of years |
| continent's property, according to the latest Jones | | | | have been rewarded with record returns. |
| Lang LaSalle European Capital Markets Bulletin. | | | | "Demand continues to be fuelled by investors |
| But the key figure is found in the boom in cross | | | | up-weighting their allocation to real estate, which |
| border transactions, which are now worth | | | | has outperformed equities and bonds over the |
| €150 billion (£101 billion), two thirds | | | | last one, three, five and ten years." |
| of total investment value. | | | | However, Mr Horrell predicted that this year, the |
| This research is clear evidence that it is no longer | | | | European property market will be "below the |
| just retirees and holiday homes seekers who buy | | | | performance of recent years" but still expects |
| property abroad. Property investors looking for a | | | | strong real returns for those bold enough to |
| monetary return rather than a second home are | | | | invest their cash. |
| increasingly casting their eyes to ripe markets | | | | He said: "Although the performance of real estate |
| across the Channel. | | | | is set to be lower in 2007, it will remain attractive |
| Marking a turnaround from a decade of stagnancy | | | | on a relative basis compared both equities and |
| in the market, investment volumes in Germany | | | | bonds - our central scenario is for real returns |
| rose by a remarkable 141 per cent over the | | | | across Europe of nine to 11 per cent in 2007." |
| course of the last 12 months to €49.5 | | | | Although there were sharp rises in investment in |
| billion (£33 billion). | | | | eastern Europe, such as 70 growth in Poland, the |
| France has also seen a large influx of investment, | | | | major markets of the UK, Germany and Spain |
| with €24.1 billion (£16 billion) flooding | | | | property dominated total volumes due to their |
| into the country, an increase of 67 per cent in | | | | inherent stability. |
| 2006. | | | | |