Germany has been identified as Europe’s most underweight real estate investment market by a report from property consultancy Knight Frank.
The report concluded that, globally, Canada and Germany have the greatest potential to accommodate real estate investment and could attract a further $4.5 billion (€3.8 billion) and $3.1 billion of capital per year respectively.
The analysis shows that six countries in Europe are attracting less inbound real estate investment than expected.
Germany, as the most underweight European market, is followed by Switzerland, Sweden, France and Belgium.
Annual investment into Austria is also significantly below forecasts, the report said.
William Matthews, head of commercial research at Knight Frank, said: “By looking at the market and economic fundamentals, and by unpicking the socio-economic factors which impact on the flow of capital between individual countries, we have found that Canada and some of Europe’s most advanced real estate markets – including Germany and France – could support more inbound investment.
“While competition provided by domestic investors in each market is one factor that can crowd out inbound investment, our feeling is that this sort of barrier will become less important over time, as appetite for cross-border transactions increases.”
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