Real estate fundamentals drive healthy European property market
Global real estate fundamentals will remain "healthy" in the next 12 to 24 months, and property in continental Europe has been identified as a particularly good investment area, new research suggests.
A report by financial services company ING Group predicted that better than expected economic growth, rising earnings and the continued inflow of capital will continue to keep the health of the majority of markets.
ING predicts that the more developed markets in Europe, such as Spain and Portugal, will perform strongly this year.
"Because of increased transparency, liquidity, and strong performance in recent years, real estate has emerged as a widely accepted asset class and, as a consequence, investors have increased their exposure to real estate," said Maarten van der Spek of ING.
"With fundamentals generally healthy and improving, earning growth should also continue to support steady income returns and we expect the strong capital inflow to continue," he added.
Eurozone gross domestic product grew at nearly twice the rate of 2005 at 2.7%.
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