Real estate investment in Europe rises 7%, according to CMS

European real estate investments have reached 234,000 million euros , which has meant an increase of 7% over the previous year, according to the annual report 'European Real Estate Deal Point 2018' carried out by CMS Albiñana & Suárez Lezo, where it analyzes 1,377 transactions in 14 European countries.
The upward trend in terms of job creation, consumer confidence and GDP had more weight than factors such as uncertainty about Brexit , possible trade wars and the future increase in interest rates. This helped the growth of real estate investments in the second half of 2017 and the first half of 2018.

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According to the CMS partner and head of the study, Dr. Volker Zerr, the fourth edition of the study shows a European real estate market that continues to attract high levels of investment .
The study shows that the most demanded asset was that of the offices , monopolizing 40% of the transactions. However, he notes that excess demand has led to price increases and low returns for office investors.
Thus, with 14% of the transactions, they have directed their interests towards specialized properties , such as hotels, apartments or student houses, seeking greater benefits.
On the other hand, in more than half of the 2017 operations, no steps were taken to ensure that the buyer could meet his financial obligations. "Sellers seem confident in the financial capacity of buyers," the study indicates.
International investments exceed local ones
Finally, it is underlined that 2017 is the second year in the period covered by the study in which foreign buyers made more investments than local ones.
While in 2014 international qnnit outperformed nationals for the first time (53% of all transactions), in 2015 (53%) and 2016 (66%), nationals led. But the internationals returned to gain weight in 2017, reaching 51% of total transactions.