Leading international real estate adviser BNP Paribas Real Estate has published four guides to investing in London, Paris, Germany and Italy. Three of these guides (London, Paris and Italy) are also available in simplified Chinese. Aimed at Asian investors, the guides include market research, forthcoming ‘hot spots’ to invest in as well as tax, legal and administrative information to help entry to these European markets.
‘As a consequence of the crisis that started in 2007, average European real estate rents and prices are still far below peak levels from before this date. We expect one or two years more of difficulty so it is definitely the right time to buy European real estate in order to benefit when it catches up,’ explains Christophe Pineau, head of international research at BNP Paribas Real Estate, the property business owned by the leading global bank BNP Paribas.
Over €100 billion of real estate investment transactions have been recorded in Western Europe in 2010 and 2011 respectively, an increase of more than 60% compared to the lowest level recorded in 2009. The UK, Germany and France account for around 75% of total investment. Indeed, London and Paris are again very liquid with over €10bn of investment in 2011 along with Germany’s main 4 markets (Frankfurt, Munich, Berlin and Hamburg) with over €2 bn recorded in each.
2011 saw a rising interest in retail premises from buyers with significant large deals closed such as the Metro cash & carry portfolio in Germany which sold for more than €800m or the Parinor shopping centre sold for over €400m.
Offices continue to be by far the most favoured asset with a share of around 75%. Amongst the most significant deals in 2011 were the Deutsche Bank Twin towers in Frankfurt which sold for €592m, Chiswick Park in West London for €566m and the River Ouest in Central Paris which sold for €360m.
In fact, Europe is experiencing a two speed market. On one side, few liquid markets are supported by sound underlying markets. German markets are supported by both the positive German economic development and the low level of new development recorded since 2008, while Paris and London office markets are mainly supported by the scarcity of new development. On the other side, most secondary markets are still struggling.
Overall office take-up in 2012 should be slightly lower in all markets; indeed, the economic growth is expected to be at zero during the second half of the year. The fall in completions helped to maintain dynamic rental growth in 2011 and 2012 in the most sought-after submarkets.
“The limited new supply level will push rents further up for core markets. Despite the stability in the first quarter, these markets should witness additional rise by the end of the year and Central London, with 5% estimated growth for prime rents, has the best outlook,” says Etienne Prongue, Director of International Investment Group at BNP Paribas Real Estate in Paris.
With the most growth and the best outlook for the main European cities, there is never a better time for new international entrants to these markets. BNP Paribas Real Estate’s four published guides are written in English and cover London, Paris, Germany (Berlin, Cologne, Düsseldorf, Frankfurt, Hamburg and Munich) and Italy (Milan and Rome). Investing in London, Investing in Paris and Investing in Italy are also available in simplified Chinese. BNP Paribas Real Estate is the market leader in continental Europe and is present in 36 countries, 15 wholly owned subsidiaries and 21 by its Alliance network.
An online version of these guides can be downloaded at http://www.realestate.bnpparibas.com/bnppre/about-us/publications-p_32913
Brenda Woo - +852 2909 8813 – firstname.lastname@example.org