Investment flows into European real estate to remain robust in 2016, Colliers says

PUBLISHED : Wednesday, 07 October, 2015, 1:32pm
UPDATED : Friday, 09 October, 2015, 10:42am

Investment into real estate in Europe, Middle East and Africa (EMEA) is expected to remain on an uptrend in 2016, in spite of the volatility in China that could weigh negatively on mainland insurance companies, state-owned enterprises and private investors, according to Colliers International.

The upbeat outlook comes amid what’s anticipated to be a record year for the European market, with this year on track to top 2007 in terms of inflows of capital by domestic and international investors, the property consultant said in its third quarter EMEA Capital Flow Report.

These investors channeled €135 billion into European real estate assets in the first half, up 37 per cent from a year earlier.

“The second half of the year typically represents a busier trading period, so European real estate investment levels should surpass those reached at the previous 2007 peak,” Colliers said in the report

The report shows the Asian investment into European real estates increased notably from 2010, with the pace of acquisitions accelerating from €4.2 billion in 2010 to reach a peak of €13.1billion in 2013.

Colliers said it did not see any evidence that the “Asian wave” of capital flows were diminishing. Colliers said some Chinese investors were pulling out of existing investment in Central London, but other forms of Chinese capital were continuing to pour into other parts of Europe.