Real estate

The volume of investments in real estate in Europe in 2008 decreased by 44%

The total volume of direct investments in European real estate in the first half of 2008 amounted to 69 billion euros, which is 44% lower than in the same period of 2007.

The total volume of direct investment in real estate in Europe in the second quarter of 2008 amounted to 32 billion euros, which is 14% less than in the first quarter. For the first half of 2008, this figure reached 69 billion euros, which is 44% lower than in the same period of 2007.

As noted in a press release, in the first half of 2008, even those countries in Europe that are traditional leaders in this indicator experienced a drop in investment in real estate.

“The share of Great Britain, Germany and France, which usually occupy about two thirds of the total volume of transactions in this market, accounted for slightly more than half of market activity. Moreover, the total volume of transactions for these countries fell in the first half of the year to 35 billion euros, by 60% compared to the same period last year, “- said in a press release.

At the same time, as clarified in the Jones Lang LaSalle report, the smaller markets of Belgium, Finland, the Netherlands, Spain and Sweden turned out to be more stable and increased their share in the European market, having concluded a number of significant portfolio and corporate transactions.

As added in the press release, the still strong Russian market contributed to stability in the markets of Central and Eastern Europe, where the total volume of investment transactions in the first half of 2008 amounted to 4 billion euros.

“While the banking sector continues to experience a severe lack of liquidity, taking many investors out of the game, reducing the number of large transactions and leading to a shift towards the sale of single assets, a certain amount of capital for investment in European markets remains,” the study says. .

So, open and closed German funds this year have already invested over 600 million euros in the London market and are actively negotiating with participants in other European markets, according to a message from Jones Lang LaSalle.

In addition, there are “cash-rich investors from the Middle East” in the markets who are more interested in company-level transactions than in selective acquisitions of individual assets.

“We expect that the total volume of transactions in the European real estate market in 2008 will be approximately 45% lower than last year when it amounted to 244 billion euros. In the second half of the year, the number of transactions concluded as a result of the need for investors to refinance or recapitalize holdings under the influence of the financial environment, ”the study says the words of the head of the European Department for Financial Markets and Investment Jones Lang LaSalle Tony Horrell.

Jones Lang LaSalle provides comprehensive real estate and wealth management services locally, regionally and globally to owners, tenants and investors. The company’s portfolio is more than 1.2 billion square meters worldwide. In Russia and the CIS countries, Jones Lang LaSalle is represented by offices in Moscow, St. Petersburg, Kiev and Almaty. The company’s turnover in 2007 amounted to about $ 2.7 billion.

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