EUROPE - European cross-border investment in real estate rose for the third quarter of this year but remains some 25% below the record figures of last year, according to the latest report from DTZ Research.
DTZ says cross-border property investment has amounted to €4.527 billion in the third quarter of 2001, slightly up from €4.255 billion in Q2.
However, it notes that the figure for 2001 on an annualised basis is some 25% below the record figure of 2000, although the figure is still on a long-term upward trend.
This says DTZ is evidence of the continuing strength of property as an investment type.
US investors accounted for 45% of all cross-border investment with Germany representing 20% during the first three quarters.
The UK remains the most popular destination having attracted 38% of investment followed by France at 27%.
The fourth quarter of 2001 has also started well with significant transactions concluded, including the largest ever property deal in France with France Telecom selling 40% of its portfolio to a consortium including Goldman Sachs, GE Capital and CDC Ixis, for €2.97bn.
Peter Collins, managing director of DTZ EuroInvest, comments: “Investors are maintaining their confidence in property as a more stable asset class across Europe despite concerns over a general downturn in the world economy. It is encouraging that American investors still have a huge appetite for European real estate representing 45% of all investment so far this year, already more than the annual figures for 1997, 98 and 99."