Investors Drawn to Developing Economies

According to BC Richard Ellis, the leading global real estate advisor, activity in the retail property investment sector has shifted towards Europe’s growing economies like Germany and Russia.

In the first half of the year, Europe’s retail property investment climbed to 20.1 billion euro; accounting for 37% of commercial real estate investment. Retail specialists, listed property companies such as IVG Immobilien in Germany and institutional investors have been drawn to the rapidly developing economies of the region surrounding the Baltic Sea.

Investments in the Eastern European region have increased despite the decreased activity in the UK. Though still a major player, the UK’s share has fallen 36% during the same period this year; surpassing even the historic average of 45%. With feeble economic growth and deteriorating consumer confidence, the UK’s investment market has been significantly weakened.

However, the good news is that the UK is still managing a substantial amount of European-based hedge fund assets.  In addition, together with America, the United Kingdom is one of the main  addresses for management of Asian hedge fund assets.  Thus within the hedge fund industry, the UK is faring well.

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