Record Asian investment into European property set to go on

The UK property market is Asian investors’ top target despite Brexit uncertainty, a report said.

According to a report commissioned by Dutch fund services firm, Intertrust, the UK will retain its position as the top market, with more than half of investors predicting it will see the biggest increase in Asian capital flows, followed by the Nordics and the Germany, Austria and Switzerland region.

Over two thirds of property professionals believed the volume of Asian investment in European real estate assets will increase over the next two years.

Respondents said Europe’s ‘safe haven’ status, the continued search for yield and the ongoing high demand among non-banks such as Asian sovereign wealth funds were the top three drivers behind investment in the region.

China remains the largest investor in European real estate, but South Korea and Singapore have been increasingly active.

Jon Barratt, head of real estate at Intertrust, said that though 2017 was noted for record-breaking volumes of Asian capital pouring into European commercial real estate, the findings suggested that there is more to come.

He added: “Record high valuations have fostered an intensely competitive environment for European real estate between global investors from Asia, the US and Europe. Growing Asian demand is welcome news for investors looking to sell assets but less welcome for those looking to extend their exposure to bricks and mortar.”

©2018 funds europe

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