Apparently, we are a nation of Paris-loving shop owners. Over the past decade UK investors have splurged €69.8bn in Europe buying more shops than any other asset class, according to research from CBRE.
Looking across all sectors, Brits have spent more than €7bn in Paris, making it the number-one city for UK investors. No other city comes close. Madrid, in second place, attracted less than half, at €3.1bn.
That France, our nearest neighbour, is top of the charts will surprise few, and UK buyers represent just 6% of Paris’ total. But what might raise a few eyebrows is that the UK represents more than half of all investment in Bulgaria, and two-thirds of all money pouring into Russia.
In Madrid, UK investors spent €3.2bn out of €20bn, or 16% “It’s surprising as we spent almost nothing in Barcelona,” says Michael Haddock, head of EMEA Capital Markets Team at CBRE.
Haddock admits it’s hard to see the drivers for this, as investment outside the UK is more likely to be fund managers than institutions. “Foreign investment tends to be the optional top bit that is driving returns with a bit more risk.
“That will change and we’ll see UK institutions buying directly which hasn’t been a huge part of the culture.”
Compare countries and Germany still wins out at €7bn with four cities in the top 10 – more than any other country.
nadia.elghamry@estatesgazeette.com
