Stable regions spark property investment growth

Published on October 24, 2011 by David Turner · No Comments

New figures from a leading financial and professional services firm suggest that people are still investing in property despite the financial issues which are affecting people throughout the world.

Property investment within Europe appears to be still going strong

The evidence from this year alone is compelling. Investment activity in the first 9 months of 2011 increased by 43% compared to the same period last year.

Arguably more fascinating is the fact that during the third quarter of this year property transactions across the world rose by 36% compared to the same period last year.

People seem to be understandably attracted to areas where economies remain strong and debt remains minimal. These regions are seen as ideal places to tie up funds in property, itself still seen as a relatively ‘safe’ investment.

Regions which meet the criteria stated above include France, Spain, Germany, Poland, Russia, and Scandinavia. All of these areas have seen steady investment from a variety of global businesses and individuals this year.

Arthur de Haast, Head of the International Capital Group at Jones Lang LaSalle, echoed the positive mood within the industry as well as sounding a note of caution.

“Investors are taking refuge in core, well-lit products in specific markets.” However, he also stated that “the market remains very much sentiment-driven and the mood is cautious.”

It seems that, for now, investors would be best advised to stick to strong, stable regions such as those mentioned above before getting more ambitious with their property portfolios.

Transfer Money to Europe

If you are looking to invest in Europe, think carefully about how you will be transferring money to Europe. Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

So if you are sending money to Europe– which you will inevitably have to do if you are looking to make a property investment, be sure to compare the market before you buy your overseas currency.