in a year when cross-border investment accounted for 48% of total property investment says Jones Lang LaSalle.
According to Jones Lang LaSalle´s latest European Capital Markets Bulletin, European property investment in 2003 amounted to €80.6 billion, only 8% down on 2002´s record level. The UK accounted for half of total investment, remaining Europe´s top property investment destination.
Commenting on the findings, Tony Horrell, Jones Lang LaSalle´s CEO of European Capital Markets, said: 'The largest single group of investors were private property companies, followed by German open ended funds and special funds, who were purchasers in 21% of the transactions that Jones Lang LaSalle advised on in 2003'.
Elsewhere in Europe the Nordic region (Sweden, Denmark and Finland) overtook France as the most active investment market after the UK, due primarily to strong activity from foreign investors in Sweden. The Nordic region accounted for 12% of total European investment compared to France´s 10%. The Bulletin also highlights Central and Eastern Europe, where investment volumes rose for the fourth year, with foreign investors again dominating the market.
In terms of sectors, Jones Lang LaSalle´s findings show that the office sector´s share (44%) fell for the second consecutive year as retail and logistics continued to attract investor interest. This is attributed to investors seeking better returns in the form of high-income yields from sectors such as retail, which accounted for 24% in 2003, and distribution/warehouse properties.
Jones Lang LaSalle´s European Capital Markets Bulletin paints a bright picture of cross-border investment activity across Europe, which rose by 10% in 2003. The report states that the cross-border share of transactions in 2003 was up sharply on 2002, rising from 40% to 48%.
Looking forward to 2004, Tony Horrell predicts: 'The outlook remains positive for the Europe´s real estate capital markets in 2004. We believe that investment volumes will be similar to those in 2003, as real estate remains an attractive investment in relation to other asset classes. While some capital will inevitably be drawn away if the recovery of equity markets gathers momentum, we believe that this could be offset by increased activity from institutions, who are upweighting commercial property in their portfolios.'
Jones Lang LaSalle is the leading global real estate services and investment management firm, operating across more than 100 markets around the globe. The company provides comprehensive integrated expertise, including management services, implementation services and investment management services on a local, regional and global level to owners, occupiers and investors. Jones Lang LaSalle is also the industry leader in property and corporate facility management services, with a portfolio of approximately 735 million square feet (68 million square meters) under management worldwide. LaSalle Investment Management, the company´s investment management business, is one of the world´s largest and most diverse real estate investment management firms, with approximately $21 billion of assets under management.
