International buyers take nearly half of European investment

Cross-border investment accounted for 45% of Europe's total transaction volume in the first three quarters of the year, according to a new research report published by Savills.

Investment volumes in Europe surged 13% year-on-year, reaching €80.6 bn in the first three quarters. Of this total, international buyers accounted for €36.3 bn, of which €23 bn was transacted by investors from outside Europe.

Investors from Middle and Far Eastern countries in particular have increased activity levels in European markets, accounting for a total €11.8 bn of transactions so far in 2013, representing a 22% increase on the whole of 2012.

These investors, including several newcomers in 2013, tend to enter European markets with acquisitions in the UK where 74% of their investments are concentrated. The research shows that US investors are by far the most active cross-border buyers in the region, accounting for €7.2 bn of transactions in this period and carrying out acquisitions in all surveyed markets in 2013. The majority of US investment is recorded in the UK (49%) and Germany (16%).

In terms of volume the majority (67%) of overseas investment is transacted in the UK and Germany. Furthermore, the share of cross-border investment in individual markets varies considerably across the region with the highest levels recorded in Poland and Italy, where international money makes up 85% and 89% of total investment, and is lowest in Sweden (8%).