Jones Lang LaSalle (JLL)’s European Research Team has published its half-year report regarding the European real estate capital market. According to the report between January and July 2004 a total of € 41.3 billion was invested in the European market. This means a 30% raise compared to the same period last year. The causes of the rising demand according to JLL are the predominantly low interests and at the same time the favorable financing possibilities in Euroland.
The German open real estate funds were increasingly active in the first half-year of 2004. This expressed itself frequently in the quick re-investment of obtained profits into new markets. Also the cross-border investments in Europe developed noticeably. While in the same period last year still 47% of all investments were made with foreign investors, this share is now only 36%. All together the absolute volume of cross-border investments is still at the same level as in 2003 with € 14.8 billion.
At the center of the interest of the investors, the report still sees office objects in the cities of London, Brussels, Paris and Milan. Here interested parties speculated on the medium-term rent price increases and attractive yield perspectives. In retail and logistics real estate, the demand still exceeds the offer.
Starting from the further increasing dynamics on the European real estate capital markets, JLL is counting on a 10% increase in investment activities for the total year of 2004.
Source: Jones Lang LaSalle