European real estate deals are expected to soar to €230 bn this year, up from €202.69 bn last year, according to Tristam Larder, head of European cross border investment at Savills.
European real estate deals are expected to soar to €230 bn this year, up from €202.69 bn last year, according to Tristam Larder, head of European cross border investment at Savills.
Germany is expected to account for around €50 bn of the total, with the UK accounting for an additional €88 bn.
However, despite strong investor appetite for real estate, not enough investors are capitalizing on cross border differences, Larder says. 'For example, yields are very sharp in markets like Paris but office rents are typically much lower in Paris and Munich than London. I´m surprised that more investors aren´t taking advantage of that, particularly when some investors are being pushed out of London because it`s so hot.'
The newest wave of Asian investors hovering on the periphery are also starting to take the plunge, Larder says. 'Asian investors are going to become more adventurous and will move more into continental Europe next year.
'Some will team up with domestic players but they typically invest in excess of €100 mln per deal, which can also include prime buildings in secondary locations.'