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At a Glance - Cross-border investment in Europe - March 2018

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All-time record for foreign investment in Europe

The European commercial property investment market reached a peak of €261bn in 2017, a historic high.

The concerns expressed in 2016 about European political uncertainties seem to have evaporated since cross-border investment reached an all-time high of €136bn in 2017, above 2007 record. Foreign investment as a share rose to 52% of the European total, although that is lower than the 57% share recorded in 2007.

In 2017, European investors accounted for 39% of cross-border investment, and were again first in terms of money invested in Europe. They invested €53.4bn, which represents a growth of 14%. Europeans showed strong interest for office buildings as well as shopping centres such as Madrid Xanadu acquired by Intu Properties for €559m. Asia & Pacific investment in Europe almost doubled in 2017 reaching second place by investor origin, and passing North Americans for the first time. Asians mainly focused their investment on the United Kingdom (€14.7bn), targeting trophy assets such as the Walkie-Talkie and the Cheesegrater in the City of London. After plummeting in 2016, American investment in Europe stabilised in 2017 at €25.3bn. Major assets were acquired such as Sony Center in Berlin (Oxford Prop. & Madison Int.). Middle East investors spent €7.5bn in Europe in 2017, which represents a stable share of 5%.

 

At a Glance - Cross-border investment in Europe - Q4 2017
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