22/10/2014
More than EUR500bn looking to invest in European real estate
Compared to the year before the last financial crisis, 2007, the volume of capital looking to invest in European real estate has doubled, from EUR 250 Bn to EUR 515 Bn in 2014, according to Catella. However, Catella expects about half of the capital to actually find its way into the markets in the end. The reasons are shortage of core segment properties, mismatched price expectations and complex regulations that hamper new funds’ investment ability. Therefore, its forecast for 2014 is positive but cautious, predicting a European transaction volume of around EUR 215 Bn, which is slightly lower compared to 2007, but an increase of 53 percent compared to 2013“As capital spills over from traditional Europe investment centres London and Paris in the next 12 months, we expect to see increasing investment activity in Germany, the Nordics and Spain,” says Thomas Beyerle, group head of research at Catella.
