RealCapital Analytics' latest data shows that Chinese investors purchased over 3 billion euros in European real estate last year, a year-on-year increase of 200%. RCA states that wealthy individuals, developers, and insurance companies are increasingly active in investing in various types, sizes, and locations of real estate.
In recent years, due to low interest rates and government quantitative easing policies in various countries creating a low-yield environment, global investors have increased their investment in real estate to enhance returns. As Simon Hardwick, a partner at PwC, stated, "a massive influx of capital" has entered the European real estate market.
According to CBRE data, the countries with the fastest growth in property investment are Spain and Portugal. Research by PwC indicates that although the Dublin real estate market was "stagnant" a few years ago, it is now considered "extremely hot." The investment boom in Ireland has not yet subsided, and investors are now setting their sights on Spain.
For individual Chinese investors, immigration is an important consideration. Compared to the stringent requirements for new immigrants in traditional immigration countries, European immigration policies are much more lenient, which may be a key factor in the popularity of European real estate among Chinese investors.
Chinese institutional investors are also very active in the European real estate market. According to reports from Wall Street Journal, last November it was stated that China Investment Corporation was nearing completion of the acquisition of an office property in London's West End held by private equity giant Blackstone. As early as 2012, China Investment Corporation purchased Deutsche Bank's UK headquarters building in the City of London for £250 million. Chinese real estate companies are also beginning to establish a presence in Europe. For example, Greenland Group announced on January 7 in London that it would invest in the residential project of the RAM Brewery in Wandsworth, located on the south bank of the River Thames, and signed a formal acquisition agreement for the land transaction.
Chinese institutional investors are also very active in the European real estate market. According to reports from Wall Street Journal, last November it was stated that China Investment Corporation was nearing completion of the acquisition of an office property in London's West End held by private equity giant Blackstone. As early as 2012, China Investment Corporation purchased Deutsche Bank's UK headquarters building in the City of London for £250 million. Chinese real estate companies are also beginning to establish a presence in Europe. For example, Greenland Group announced on January 7 in London that it would invest in the residential project of the RAM Brewery in Wandsworth, located on the south bank of the River Thames, and signed a formal acquisition agreement for the land transaction.
