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EMEA investment volumes expected to surge in 2015

4th February 2015

Over three quarters of property investors in EMEA plan to increase real estate weightings in the region in 2015 according to the benchmark 2015 Global Investor Sentiment survey from Colliers International.

The survey found that the investment strategy of 78% of EMEA-based investors was to grow their portfolios in the region in the next 12 months, up from 61% last year; a sentiment matched by 67% of investors globally.

“European institutions in particular have now started to show signs that they are back and very competitive in core markets where Asian and North American capital has dominated over the past few years, expanding in both their home countries and across borders in 2015,” said Richard Divall, Head of Cross Border Capital Markets, EMEA at Colliers International.

“Looking at oversees capital entering the region, whilst London is the gateway to Europe, there are signs of this changing, with Asian capital now focusing not just on London, but tier one cities in Europe including Munich, Frankfurt, Paris, Madrid and Rome,” said Divall.

According to the report EMEA investors will look at London as well as Germany’s “Big Six” cities, with Berlin appealing to many at investors as well as Paris, Madrid.

Whilst some perceptions about investment conditions in Europe are less positive due to political uncertainty, particularly as a result of recent developments in Ukraine and Russia, the impact on real estate investment is localised.

Whilst some perceptions about investment conditions in Europe are less positive, the impact on real estate investment is localised, with high investment volumes in Poland and the Czech Republic (both set to at least match 2013 volumes.) Tier two markets such as Hungary, Romania and Serbia are also set to out-perform 2013 investment levels. Colliers’ prognosis is for an even better year in 2015.