SPAIN is the top investment target in Europe this year for active investors, with Germany chasing its heels and the UK not too far behind according to Knight Frank global real estate consultants.
In a recent European poll, the consultants found that 27 per cent of more than 150 investors questioned declared Spain to be their preferred investment target due, largely, to the strength of the current recovery balanced against prices which are still far from their previous peak.
The fundamental reasons to invest in Spain, said Humphrey White, head of Capital Markets at Knight Frank Spain, are even stronger than they were a year ago. Meanwhile, 25.4 per cent of those questioned said they preferred to invest in Germany and 17.4 per cent said that they were more interested in UK regions.
Managing director of Knight Frank in Europe, Chris Bell, reported: “The UK is well ahead of the rest of Europe in terms of the property cycle and has already seen significant yield compression. However, it is encouraging that rental growth is beginning to re-emerge more widely across Europe, helped by the strengthening of occupier demand and the steadily falling availability of good quality space exacerbated by the lack of development over the preceding recessionary years.”