Investment in tier-two European real estate markets jumped 76% to €12.8 bn in the first six months of 2014 compared with the year-earlier period, according to BNP Paribas Real Estate.
Investment in tier-two European real estate markets jumped 76% to €12.8 bn in the first six months of 2014 compared with the year-earlier period, according to BNP Paribas Real Estate.
The figures are based on the firm's regular analysis of eight tier-two countries (Belgium, Italy, Ireland, Luxembourg, Poland, Romania, Spain and The Netherlands) and 10 cities (Amsterdam, Barcelona, Brussels, Bucharest, Dublin, Luxembourg, Madrid, Milan, Rome and Warsaw).
The surge in investment is partly driven by foreign money coming into those countries. Foreign investment accounted for 69% of the total in H1 2014, the highest proportion ever found in BNP's research. It notes that Asian money is now moving beyond London and Paris to tier-two cities.
Office and retail remain investor favourites. Tier-two markets saw a 244% increase in retail investment between H1 2013 and H1 2014.
