Europe: Real Estate Investment Rising in 2010
In the past 3 months, commercial real estate investment has risen more than 40% in Europe since the abrupt demise of Lehman Bros in 2008, which sparked the biggest shake up on wall street in decades.
According to CB Richard Ellis, the property consultancy, more than 25.7 billion Euros were sealed in the 4th quarter of 2009 alone, which brought the total 2009 turnover to 70 billion Euros. That is still lower than the 121 bn euros turnover of 2008.
The UK and Germany were the top two European countries with most investment shares in the market. CBRE’s director of European research and consulting, Michael Haddock, claimed the trend is now spreading throughout other markets as well. He also pointed out that the strongest growth seemed to have unexpectedly occurred in Central and Eastern Europe, and there was also a rise in cross border investment in the second half of 2009.
The biggest acquisition in the second half of 2009 was the purchase of HSBC’s headquarters in London’s Canary Wharf by South Korea’s National Pension Service of Korea for $1.3 billion.