Home Architecture Irish spend over €12.5bn on European commercial property

Irish spend over €12.5bn on European commercial property

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Irish investors have spent more than €12.5 billion buying commercial property in Europe since 1997, according to new figures from DTZ Research. Irish buyers accounted for about 6 per cent of the €210 billion spent on cross-border purchases since 1997, making them the joint fourth biggest acquisitors with British investors. US, German and Dutch investors took the top three positions. Britain and France are the most popular locations for overseas property buyers. Irish investors were particularly attracted to Britain, spending €4 billion there alone last year. The figures exclude hotel purchases, such as the Irish acquisition of the Savoy Hotel for around €1.1 billion.

Irish spend over €12.5bn on European commercial property 26 June 2005 By Neil Callanan Irish investors have spent more than €12.5 billion buying commercial property in Europe since 1997, according to new figures from DTZ Research. Irish buyers accounted for about 6 per cent of the €210 billion spent on cross-border purchases since 1997, making them the joint fourth biggest acquisitors with British investors. US, German and Dutch investors took the top three positions. Britain and France are the most popular locations for overseas property buyers. Irish investors were particularly attracted to Britain, spending €4 billion there alone last year.

The figures exclude hotel purchases, such as the Irish acquisition of the Savoy Hotel for around €1.1 billion. “The main drivers of cross border investment are the low real cost of money and the attraction of sol id income streams,” the DTZ Money into Property report states. “This weight of money is likely to remain strong as slow economic growth in the EU will keep interest rates low.” Michele Fallon, investment director at DTZ Sherry FitzGerald, said that there was increased interest in “newer markets such as the Scandinavian countries along with Greece and Turkey”.

Increasing numbers of British investors have been buying in Scandinavia and Irish investors are now beginning to follow suit. “There’s quite a few Irish people looking at the moment,” she said. “The Swedish economy in particular is regarded as a solid performer with a stable economy. Getting suitable properties in traditional markets is difficult at the moment and investors are now willing to look at places like Sweden if you can get a secure income and tenant.” The demand here reflects the general demand for property across Europe with DTZ Research reporting that “huge wall of equity is waiting to be invested and additional sources of product are coming through from corporate balance sheets as well as local and central government.”

Source: Thepost.ie

Les Calvert is the owner of overseaspropertymall.com and many other property and travel related websites. Les writes news and articles on the overseas property market for leading websites, trade magazines and newspapers.

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