Investors in real estate changing focus to continental Europe
Rising levels of commercial real estate investors in the UK make real estate in Europe to change their focus to continental Europe, where return on property is higher, according to experts.
\"We find many interesting opportunities in the continent,\" said, quoted by Reuters, Ian Gleeson, Director of Investments in CB Richard Ellis Investors. \"Although the UK still offers opportunities, prices there are less attractive than a year ago.\"
The values of commercial property in Britain rose 13 percent from July 2009 onwards with the recovery of the market after a two-year decline, although the rental market is still weak, while average rent levels continue to fall, says the publication.
According to Ben Stirling, managing director of Aviva Investors, the company provides an assessment that the profitability of commercial properties in continental Europe will average 7.5 percent between 2010 and 2015, compared with 8.5% expected for Britain .
\"Against this background, Britain appears attractive in terms of return, although much of value in the UK will come within this year and we expect that the rate of return become more attractive in the future,\" says Sterling.
Both companies believe that real estate markets in France and Germany will be very attractive as Aviva believe that such will be the Western European and other markets such as the Nordic markets, Belgium, Holland, Luxembourg and others.
Sterling notes that there are concerns related to credit problems of some \"marginal\" markets such as Spain and Ireland.
Different views is the executive director of Land Securities Francis Saluey who says that the London office market still offers good potential for growth because entrepreneurs have not led to overbuilding as in the early 2000\'s.
\"London is a global city, many companies do not serve the Newcastle and Manchester, they serve Singapore, Hong Kong and New York,\" he said, adding that companies in London to continue its expansion plan in line with global growth.
Land Securities last November announced plans to launch three new projects around the West End in London this year, which will be completed in 2012 and 2013
Published on 2012-05-22 10:17:22
Source: Investor.bg
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