Germany overtakes U.S. as number one cross-border investor in European real estate.

Germany has overtaken the United States as the single largest investor into European commercial property accounting for almost 30% of total purchases in 2002 claims DTZ Research.

According to DTZ’s ‘European cross-border investment in real estate’ report, the European investment markets remained strong throughout 2002 with total cross-border investment reaching € 31.5 billion, mirroring the peak levels seen in 2000.
Of this figure, German cross-border investment accounted for almost € 9.3 billion reflecting 29% of the total. Investment from the US accounted for 27% of the total amounting to € 8.6 billion - the lowest level recorded since 2000 and is significantly below the € 11.3 billion recorded in the previous year.

German vehicles have dominated cross-border investor activity throughout the last 12 months accounting for six of the top ten investors in European commercial property. CGI Haus Invest leads the pack having reportedly acquired more property than any other investor, committing over € 2 billion of capital into European markets including the acquisition of three office buildings in Paris from Goldman Sachs’ Whitehall Fund and Shaftesbury for around € 450 million.

UK investor activity has seen a marked increase over the last 12 months accounting for 8% of all investment. Irish investment has remained constant accounting for 4% of activity with a strong focus on the UK market.
In terms of location, the UK is still firmly at the top of investors shopping lists attracting almost a third of total investment activity in 2002. This amounted to around € 10 billion, a 10% increase on the previous year.

The volume of purchasing activity in France remains high seeing an increase from € 6.9 billion to € 7.4 billion in 2002. However as a percentage of total cross-border investment it remained at 23%. Offices continued to be the property type of choice for investors reflecting almost half of all activity across Europe.

Source: DTZ International

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