European property back on cross-border radar: Savills

Europe is back on the radar of global cross-border investors and these buyers are set to be key drivers of the market in 2013, according to the latest European investment bulletin published by Savills.

The international real estate adviser noted that overseas purchasers have increased their presence predominantly in the UK (from 35% to 46% between 2011 and 2012), Germany (35% to 47%), Poland (90% to 96%) and France (42% to 45%), although there is a rise in appetite for the whole of Europe.

Interest in is not only coming from Europe, but also further afield with investors from Asia, the Middle East and the US expanding their requirements.

New entrants of note include Latin American fund, Carso who began investing in Spain at the end of 2012 and the Azerbaijan’s State Oil fund, which has entered the French market.

In addition, Savills research highlights that 2012 was characterised by a significant growth in activity from sovereign wealth funds from Norway, the Middle East and Asia, which has resulted in an expanding deal size as well as an increase in the number of portfolio acquisitions.

Marcus Lemli, head of European investment at Savills, commented: 'This renewed interest from European cross-border and global investors in the European markets is very positive news. While these investors are predominantly risk averse, we are seeing some attraction from opportunistic funds both in the core and peripheral markets, which we expect to continue throughout 2013.'

Click on the link below for the full bulletin.