International Investors Target Central Europe

LONDON-At a recent European property conference held by Jones Lang LaSalle, 59 percent of the international commercial property investors present said they would definitely or probably seek investment opportunities in central Europe.

The delegates represented many of the largest and most active investors in European commercial property: insurance companies, pension funds, property companies, developers and investment fund managers, from countries including Austria, France, Germany, the Netherlands, the Nordic region, the UK and the USA. And 26% said they would ‘definitely’ invest in the region over the next two years; 33% said ‘probably’, and 28% ‘perhaps’.

The three central European countries were the first choice investment destination of 32% of delegates, well ahead of France, second with 16% and Spain, third with14%.

Sven Lemmes, JLL’s Head of Investment Business in central Europe said: ‘These markets are maturing rapidly and can offer attractive investment returns fuelled by strong economic growth. By contrast, most major west European markets are now coming to the end of a period of several years of rising rents and strong investment performance.’