Commercial real estate market in Europe is out of the crisis

Commercial real estate market in Europe is out of the crisis

European commercial property in the first half of 2013 has attracted €58 billion, which is 12% higher than for the same period in 2012. Such data is provided by company Jones Lang LaSalle. In the report the company said that the investment was involved primarily in major European cities and the markets of Southern Europe, where a 34% increase of buying activity was reported in the first half of 2013 compared with the same period in 2012.

The doubling of foreign investment in Italy, the Qatari investment in hotels in Italy and Spain, and €150 million of investments made by AXA in commercial real estate in Spain - such large amounts of investments throughout Southern Europe show that the mood in the markets of the region has improved.

Ireland was the first of the peripheral countries that announced the recovery of the market. Sales in the first half of 2013 amounted to €533 million, while for the whole 2012 it managed to raise €673 million investment. The success of the Irish Green Property Fund in attracting €310 million as the stated plan was in the amount of €200 million has boosted confidence in the country.

Major markets in countries such as Britain, France and Germany, continue to attract global investors, but sales are growing also in the south Europe. Investors in the last 9 months have demonstrated a strong desire to buy and buy a lot. Experts suggest that activity in the commercial real estate markets will continue to grow.

Among the most significant transactions are called the sale of BelAir the Belgian airline company to Hannover Leasing for €300 million, the purchase of the South Korean firm Gallileo office complex in Frankfurt for €262 million and the acquisition of Silesia City Center by a consortium led by the company Allianz for €412 million

Over the next six months, the European markets need to raise €125 billion in order to repeat the last year achievement. And there is every chance that the last year's level will be even surpassed.

Experts point out that investors with an access to cheaper credits, began to invest not only in the most popular, but also in peripheral markets. This should lead to a further increase of investment and further growth in the European markets until the end of the year.

Text: Ivan Ulitin,