Record inward investment from the US and the relative attractiveness of real estate drove strong growth across Europe in 2015, according to latest figures by JLL.
Record inward investment from the US and the relative attractiveness of real estate drove strong growth across Europe in 2015, according to latest figures by JLL.
The weakness of the euro meant that although US investors spent 9% less in Europe in dollar terms, this translated into 8% growth in local currency, with all major markets experiencing significant gains. The total investment volume was $253 bn (€230 bn).
Germany and the Nordics were the standout performers with almost 30% growth. Central and Eastern Europe was the only sub-region to see a decline on last year’s volumes, although Russia bucked this trend with volumes up almost 50%.
Global real estate investment for the whole of 2015 is expected to reach $689 bn when the final figures are published, 3% lower than the 2014 figure. The market pulled up short in the last quarter, with total investment predicted to be around $194 bn, 15% lower than Q4 2014.
Despite the last-quarter dip JLL is predicting similar levels of growth in 2016, with global real estate transaction volumes finishing at between $720 bn and $730 bn. Deal volumes in the EMEA region are expected to grow by 1% to $255 bn.
‘As we move into 2016, investor sentiment seems to be more cautious, but there is certainly no sign of investors pulling back in any meaningful way,’ said David Green-Morgan, JLL’s global capital markets research director. ‘Rather, we should expect growth from 2015 levels to be more measured.’
