US investment bank JPMorgan says it expects investors to add EUR 140 bn to European listed Real Estate Investment Trusts (REITs) in the long term. In a research document released at the annual European Public Real Estate Association (EPRA) conference in Athens, Greece, the firm said the growth will be driven by the introduction of REIT legislation in major European markets and the greater availability of investment grade property from private property funds, corporates and governments.
US investment bank JPMorgan says it expects investors to add EUR 140 bn to European listed Real Estate Investment Trusts (REITs) in the long term. In a research document released at the annual European Public Real Estate Association (EPRA) conference in Athens, Greece, the firm said the growth will be driven by the introduction of REIT legislation in major European markets and the greater availability of investment grade property from private property funds, corporates and governments.
European REITs were first introduced in France in 2003, followed by the UK and Germany in 2007. According to EPRA, Europe accounts for just 22.6% of the global REIT market capitalization estimated at €754 bn, despite having 42.3% of the world’s underlying assets in the direct commercial property market. The small size of European listed real estate assets compared to total property stocks (4.9%) suggests great potential for growth.
