- ORIGINAL NEWS
Britain to lead 2024 European real estate boom as international buyers eye opportunities, research says
- SUMMARY
Expect an upswing in real estate investment in 2024, driven by falling interest rates and a modest economic recovery.
Investors from the US, Israel, Japan, and Taiwan are leading this surge, particularly in countries like the UK, Germany, and Spain.
The UK market is especially attractive due to its recently discounted prices.
Residential and warehouse properties are expected to benefit the most from this overseas investment, surpassing office buildings in popularity among international buyers.
While offices still face challenges, some investors are still interested in investing due to deep discounts.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“An anticipated fall in interest rates and modest economic revival will spur inflows from overseas investors looking to capitalize on “increasingly attractive pricing levels,” according to new research from Savills.”
“U.S., Israeli, Japanese and Taiwanese investors are set to lead that charge, spearheading a 20% rebound in real estate investment activity in 2024.”
“The U.K. looks poised to lead a European real estate resurgence this year as international investors return capital to the region’s strained property market.”
“It was followed by Germany, Poland, Spain and the Netherlands.”
“London was dubbed the most attractive city followed by Paris, Madrid, Amsterdam and Berlin, the survey found.”
“”London is one of those few cities which consistently demonstrates its resilience in the face of challenging economic headwinds and remains a major focal point for global capital,” Chris Brett, managing director of CBRE’s European capital markets division, said.”
“Global cross-border real estate investment totalled 196.3 billion euros ($212.9 billion) over the year, down 40% on the five-year average, according to Real Capital Analytics data cited by Savills.”
“A total of 65.2 billion euros ($70.6 billion) was invested in continental Europe in 2023, the majority of which originated from intra-European cross-border buyers, primarily in France and Spain.”
“”We anticipate Europe will likely reclaim its leading position as the foremost destination for cross-border investments in the next 12 to 18 months,” Savills said in its note.”
“This year for the first time, logistics and residential properties surpassed offices as the preferred asset class for overseas buyers, according to CBRE’s survey.”
“More than one-third (34%) of investors expressed a preference for logistics and 28% for residential, compared to 17% who preferred offices.”
“”Surprisingly, we’re hearing statements [from investors] around we’d like to invest in offices right now. Looking ahead, I think there will be less negativity around offices,” he said.”
Negative
“It follows a tough year for real estate in 2023, as higher interest rates pushed up borrowing costs and weighed on investor sentiment.”
“The downtick was most pronounced in Europe, the Middle East and Africa (EMEA), where inflows were 59% lower.”
“That compares to the 56% drop seen in the Americas and the 12% dip recorded in Asia Pacific.”
“Less than half (40%) came from outside of the continent — the lowest share since 2010.”
“Office transactions fell 71% against the five-year average in 2023, according to RCA data, amid concerns of a wider commercial property downturn.”