(MENAFN - Khaleej Times) London continued to attract the attention of middle eastern investors as investment increased from 7
The uk capital recorded the highest ever yearly total seen in europe for a single city in 2013 to cement its position as the region’s number one investment destination. outside of london middle eastern investors spread their capital across the continent namely in dusseldorf and paris and to a growing extent some of the recovering southern european markets as well as russia.
Nick maclean md of cbre middle east said: “property markets and commercial real estate in particular across germany and the uk is witnessing the strongest growth since the financial crisis and we anticipate further commitments from middle eastern investors in the future. london in particular is capturing the lion’s share of capital mainly attributed to its transparent legal system stable political and economic environment and above all liquidity – key factors in attracting investment.”
“london had a phenomenal year with the total value of investment reaching pre-global financial crisis levels. looking forward to 2014 it is unlikely that the market will repeat this performance. although cross-border investor demand particularly from asia is getting even stronger there are constraints on the supply side that will probably limit investment activity” simon barrowcliff executive director central london capital markets cbre noted.
Both middle eastern and asian investors recorded their highest ever annual total of european real estate investment with nearly €10 billion worth of transactions each in 2013. a strong finish to 2013 took total commercial real estate investment volume in europe to €165.6 billion an increase of 30 per cent on the previous year’s total. the q4 2013 total of nearly €61 billion was the highest quarterly figure recorded in europe since q4 2007. the final quarter of the year normally sees the highest level of investment but the activity seen represents significant acceleration in the rate of growth. despite the strong growth in total investment activity in 2013 the average deal size recorded remained essentially unchanged at €27 million.
Average deal size has been rising very slightly over the last few years but on the whole the increase in total investment volume has been achieved mainly through an increase in the number of transactions. buyers from asia accounted for 22 of the transactions over €100 million and recorded an average lot size of €126 million. this was only just ahead of buyers from the middle east who accounted for 21 of these largest transactions and had an average lot size of €120 million.