Investors in the real estate market become new supporters of the quantitative easing program (QE) by the European Central Bank (ECB), experts say.
Sale of commercial property in the Eurozone for the year ended 30 June, jumped 32%, according to Knight Frank LLP London. The volume of investment transactions amounted 104,2 billion euros ($117,5 billion). In Portugal transactions became more three times, Spain – more than two.
International investors rushed into real estate because of its relative cheapness, reports Bloomberg. The efforts of the ECB to support the economy led to the weakening of the Euro by 19% against the US dollar and 11% against the pound sterling. Note also that all facilities comply with building regulations and under the supervision of expert supervision of construction works.
In addition, as the economy needs to grow and rents, because since the global financial crisis on the construction of new facilities has been limited, says the management company M&G Real Estate.
“Investors, a few years treated double-digit profitability in the markets of the UK and the USA, believe that the next will be Europe, says property Manager M&G Real Estate’s David Jackson. – One of the main incentives for this is the QE program”.
According to him, M&G Real Estate buys grocery stores in Germany and retail properties in Milan, Copenhagen and other European cities on the back of growth in consumer lending, which can spur the demand for this type of real estate, leading to higher rents and property prices.
According to MSCI, the profitability of investments in European property with the rental income and value of the objects in the second quarter reached 4,45%. Investments in stock index Stoxx Europe 600 including the reinvestment of dividends losses of 2.5%, in the European investment grade bonds is 2.8%.