Signs of economic recovery and market reforms in Europe has helped spur increasing numbers of cross-border investments, particularly in Spain, Italy, Greece and Portugal. Slow improvements continue to boost confidence in the European commercial property market, with many investors hopeful that undervalued assets will soon revert to trend.
Still, the improved outlook for Europe’s commercial property market has led many to question whether rising foreign investments will truly benefit the economies of individual countries in the long-term.
Many investors anticipate a plethora of assets to soon enter the marketplace as a result of the European Central Bank’s asset review taking place this summer, a phenomenon that has left banks fervid to dispose of old loans.
Data from Real Capital Analytics (RCA), a global research firm focused exclusively on commercial real estate transactional data and analytics, shows that cross-border capital currently accounts for over 60% of commercial and multifamily property deals in Spain and over 70% in Italy.