European Prime Markets Cool While Secondary Markets Take Off
Europe’s prime property markets are shifting as investors are looking past the region’s hottest cities to focus on smaller economies.
This year, investment in commercial property dropped 47% in the UK, 35% in Germany and 32% in France, according to data from Real Estate Analytics. While some of that decline has to do with Brexit fears, especially in London, experts say the bigger reason is these markets are becoming too expensive, the Wall Street Journal reports.
The search for better deals in smaller economies has pushed commercial property investment up 20% in Poland, 9% in the Netherlands and Sweden and 6% in Spain. And experts don’t see that changing anytime soon, expecting Europe’s low interest rates to keep attracting investors in search of higher yields. [WSJ]