Foreign investment dropped 19% in 2016, after a record volume in 2015
The economic recovery continues in the Eurozone. Despite a slowdown at mid-year, GDP maintained a stable pace of growth in 2016 with 1.7% on average. Eurozone activity appears to have been neither buoyed nor punctured by recent geopolitical events.
It should enjoy growth close to 1.5 % in 2017, a slight decline on 2016 due to political uncertainties at national level and some less favourable economic fundamentals (such as raw materials, inflation, oil prices and interest rates).
Coming in the wake of a record year 2015, the European investment market, at €230 bn, recorded a 10% slowdown in 2016.
One of the strengths of the European commercial real estate market has been the amount of capital moving in between markets and flowing into Europe. After peaking in 2015, the share of cross-border investment dropped to 48% of the total in 2016 but, at €110 bn, it is the third highest amount in the last ten years.
