Global investors target UK real estate

Europe remains the preferred location for cross-border investment, followed by North America and Asia Pacific, according to a new survey of global property investors commissioned by DTZ Debenham Tie Leung.

European countries dominate the top five destinations with the UK rising from fifth place in last year’s survey to first, followed by France, Germany, Italy and Spain.

Global cross-border investment activity in prime real estate will continue to increase over the next five years with 64% of respondents planning to raise their overseas investment in the next three to five years. Only 10% plan to decrease their holdings in non-domestic real estate. But Asian and European investors are more likely to increase their holdings in foreign real estate than American investors.

DTZ Director Nick West said: “The outlook for the UK economy is still amongst the best in Europe. The investor favourable UK lease structures and continuing poor performance of the equities markets across Europe combine to make a compelling argument for investment in good UK property”.

The survey also showed mounting investor interest in the Asia Pacific region, particularly amongst North Americans. Of the North American respondents, around 90% have portfolios in Asia Pacific compared to just 15% of Europeans – although this figure is expected to double over the next five years.


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