Interest in prime commercial property in Europe is increasing as many investors act on expectations of improving capital values as the region recovers from the global economic downturn.
According to a briefing paper from international consultants CB Richard Ellis the majority of interest is coming from equity investors who operate with a low level of leverage and whose investment is mainly in core property.
The exception to this rule is the UK, where investor interest has spread from the prime segment into nearly all parts of the market, largely due to the lack of prime property that is on the market.
This trend is expected to spread to other parts of Europe over the next few months, with Paris expected to be one of the first places where demand expands to include the semi-prime part of the market. source: http://www.nuwireinvestor.com/articles/interest-in-prime-european-commercial-real-estate-trending-upward-53837.aspx
Spain, Paris, even the UK are experiencing renewed optimism for worldwide economic recovery. The European commericial real estate market’s prime yield rates have stabilized mainly due to investor demand.
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