Euro devaluation and low interest rates to fuel property investment in 2015
Investment in Europe’s property market is expected to jump by as much as 10 per cent this year thanks to low interest rates and the expected ongoing euro devaluation.
Research published yesterday by Savills showed investment volumes could top €210bn (£150m) by the end of 2015, up five to 10 per cent on the €199.3bn of deals completed last year. The property advisory firm expects some €38bn will pour into Europe in the first quarter.
France, Germany and the UK are expected to attract the most investment after volumes jumped by 38 per cent, 28 per cent and 16 per cent respectively last year. However, Spain and Ireland saw the biggest increases of 194 per cent and 132 per cent, as Ireland’s bad bank Nama offloaded assets in inherited from the property crash.
Savills’ head of European investment, Marcus Lemli, said: “The quantitative easing programme announced by the ECB, the expected devaluation of the euro against other currencies and low interest rates will all help to continue to make Europe an attractive place for real estate investment.”
He said more mega deals, those over €1bn, were likely this year.