US cross-border capital to Europe last year fell just short of the 2007 peak, according to global commercial real estate data and analytics firm Real Capital Analytics (RCA). Simon Mallinson, RCA’s Executive Managing Director for EMEA & APAC, stated that this strong first quarter may indicate the record may be broken this year. The rumored Federal Reserve interest rate hike and the current swell of the US economy has caused the dollar to strengthen, gaining 26 percent against the Euro year-over-year.
2014 US cross-border capital to Europe climbed 90 percent last year to 41.2 billion euros ($45.3 billion), just shy of the 2007 peak of 41.5 billion euros. Another 8.9 billion euros has been spent this year through March 25, with a further 3.3 billion under contract, added RCA.
“The U.S. Dollar-Euro exchange rate movements make unhedged European real estate look increasingly cheap and U.S. investors remain convinced that mispricing opportunities exist across the continent — Americans will likely outpace their previous peak,” concluded Mallinson.