For decades, those from Asia looking to buy real estate in Europe began and ended their search in the same place, the United Kingdom. London was the preferred choice and while the market there is still popular among Asian buyers, other cities are catching up.
The European Public Real Estate Association (EPRA), a Brussels-based non-profit, is one organisation looking to bring real estate companies from countries including France, Spain and Italy and investors in Asia together to help raise awareness. According to the South China Morning Post, EPRA now has more than 220 members, representing over EUR 365 billion worth of real estate assets.
ERPA has noticed an increasing interest in European property from Asian buyers, but Philip Charls, ERPA chief executive, tells the newspaper they are still cautious when it comes to real estate outside of the UK. The Brexit was a major reason Asian buyers started looking elsewhere when making property investment in Europe. Countries with stronger economies, such as Germany and France are now suitable alternatives.
“Retail properties and office buildings remain popular assets but I have also seen more activity in the hotel sector, such as hotels in Spain, because of the fast-growing tourism industry,” says Charls.
Brexit might force some financial institutions to move their activities to other European countries with Paris, Frankfurt, Dublin, and Milan, set to benefit. As these financial institutions move away from London to other locations in Europe, Asian Investors will likely consider the office markets of Frankfurt and Paris for their investments. According to Charls, that could become a dominating market trend over the next few years.
And while some are worried about the upcoming elections in Europe and another Brexit, those fears might be overblown. “I don’t expect any direct influence in the market because of the planned elections coming up in France, the Netherlands, and Germany this year. They will create some uncertainty. But i don’t think you will see another Brexit happening,” says Charls.
