Real estate investors from all corners of the globe are eyeing European markets in 2014, according to Jan Willem Bastijn, head of EMEA capital markets, Cushman & Wakefield.
Real estate investors from all corners of the globe are eyeing European markets in 2014, according to Jan Willem Bastijn, head of EMEA capital markets, Cushman & Wakefield.
As a result, the huge weight of money will likely drive more than a 13% increase on last year's volume of about €178 bn, Bastijn said.
The 2013 figure was already up 23% on the previous year, and according to C&W's latest International Investment Atlas, there is a lot more to come. 'This is a global report but clearly if you look at Europe you can see the markets have caught fire again. The investment climate has really changed in the last four to five months,' Bastijn said.
'The money is coming into Europe from all sources around the globe: Asia-Pacific, the Middle East, North America, South America and even South Africa, Bastijn said. 'The European markets are back in liquidity at a level not seen for many, many years.'
The inter-regional equity flows are in the first instance targeting gateway cities like London, Paris, Berlin and Frankfurt. This money is also the main driver in the recovery of the main southern European markets. Spanish and Italian investment volumes have almost doubled in 2013 compared to the previous year, thanks to an influx of foreign money.
'We expect further growth for Europe of at least 13% in 2014, which is a pretty staggering number. but I think it could be even higher given the liquidity available,' Bastijn said.
One proviso for growth is that sufficient real estate comes available to meet the rising investor demand. 'Some will become available, but maybe not as much as we would like in the markets going forward as the eyes of the world are on Europe in 2014.'
Bastijn made his comments during a video interview with PropertyEU during MIPIM 2014.