Overseas investment into EMEA expected to surge in 2015

Over three-quarters of property investors in EMEA plan to increase their real estate allocations to the region in 2015, according to the benchmark 2015 Global Investor Sentiment survey from property adviser Colliers International.

The survey found that the investment strategy of 78% of EMEA-based investors is aimed at growing their portfolios in the region in the next 12 months, up from 61% last year, a sentiment matched by 67% of investors globally.

Over 600 global investors, from sovereign wealth to private equity firms across the US, Canada, Latin America, Asia, Australasia, Europe and the Middle East, participated in the survey.

Around 30 and 28% of investors from Asia and US respectively expressed an interest in investing in EMEA and as much as 71% of the Canadian respondents said they plan to invest in EMEA in the next 12 months.

'Low interest rates have heightened the appeal of real estate to global investors as a particularly attractive asset class, which has grown global capital to unprecedented levels,' said Richard Divall, head of cross-border capital markets EMEA at Colliers International. 'European institutions in particular have now started to show signs that they are back and very competitive in core markets where Asian and North American capital has dominated over the past few years, expanding in both their home countries and across borders in 2015.'

In terms of overseas capital entering the region, there are signs of London's dominance fading somewhat, with Asian capital now focusing not just on London, but tier-one cities in Europe including Munich, Frankfurt, Paris, Madrid and Rome, added Divall. 'Total EMEA investment volumes stood at €128 bn to Q3 2014, up 5% on the same period in 2013. We expect a strong Q4 2014 and for investment volumes to continue increase in 2015.'