Categorized | International

Prime Real Estate in Europe Flourishes During Period of Financial Woes

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Europe’s financial difficulties have actually had a positive effect on the real estate market of the continent’s most valuable properties. With the growing uncertainties in the financial and political arenas, investors are seeking out the safest bets to put their money.

Investors are shying away from the big investment homerun, and are rather looking for areas that will generate a guaranteed income. Bond global stock market volatility at unprecedented levels, and the value of bond yields plummeting; prime real estate has become the best option for a stable income source.

Prices on these prime real estate properties have actually increased substantially, as they are limited in number, and there are particular investors with a lot of money actively seeking them. In fact, over three hundred and forty billion dollars has been dedicated towards the commercial real estate market in the continent. Parts of London, Paris, Stockholm, and Oslo have all been the most sought after cities.

One of the most popular choices for commercial real estate in these prime areas is that of shopping malls and stores. These areas have been a popular choice among shoppers despite the suffering economy. In fact, retail properties have made up almost forty percent of commercial real estate transactions across Europe.

As the availability of these prime commercial real estate properties begins to grow slim, it is likely that investors will move towards buying properties in secondary cities. In these secondary locations, the rates will likely be more affordable. However, investing in these areas will bring risk in conjunction with their affordability, as they won’t be guaranteed moneymakers.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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