Record levels of Asian investment into European real estate are set to continue over the next two years, according to a new report by Intertrust.
The research highlights the ongoing attraction of European real estate to international investors, with the three main drivers cited as:
- Europe’s ‘safe haven’ status;
- The continued search for yield, and;
- The continued high demand among non-banks, such as Asian Sovereign Wealth Funds.
Despite persistent Brexit uncertainty, the findings suggest that the UK will retain its position as the top market for Asian investment, with 56% of respondents predicting it will see the biggest increase in Asian capital flows, followed by the Nordics (48%) and the DACH (Germany, Austria and Switzerland) region (37%).
The extent to which these regions close the gap on the UK will be a key trend to watch over the next two years.
Jon Barratt, head of real estate at Intertrust, said, “While China remains the largest investor, South Korea and Singapore have been increasingly active.”
“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.”
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