According to the international real estate consultancy Knight Frank, the main destinations for investment in the Europe, Middle East and Africa (EMEA) region will be the United Kingdom, Germany, France, the Netherlands and Spain during the next year, in order of volume.
This is one of the conclusions of the sixth edition of the Active Capital report, presented by the company in which it studies the markets and capital at a global level, and it summarizes the global assets of the companies for the next investment cycle.
Therefore, during the next fiscal year Spain will be confirmed as an important investment destination in the real estate sector. According to the forecasts of the experts of the consultancy, Spain will receive an investment in real estate close to 7,500 million euros.
Jorge Sena, partner and director of the Commercial Area of Knight Frank Spain, claimed that “Spain is a very attractive country for investment in real estate assets, thanks to returns in ‘prime’ areas above other countries. After the pandemic, the Spanish real estate sector is recovering rapidly, especially in logistics, data centers, offices and residential areas.
The study also collects the highlights of global capital flows in 2022, divided by type of investor and sector. Therefore, experts believe that investment in these countries will be marked by the recovery of cross-border investment. The Active Capital report shows in its forecasts that 2022 will be a record year for cross-border investment in real estate at the volume level.
Regarding the activity sector, the team of professionals from the real estate consultancy forecast that the year 2022 will show that the office market is still going. Specifically, they note that the largest inflow of capital in EMEA with respect to the office sector will be in the United Kingdom, followed by Germany, France and the Netherlands. 61% of this investment will come from investment managers and institutions.
Other sectors that attract a lot of interest to investors are the PRS and student housing, which will continue to attract most of the capital from the specialized sector, as the report reflects.
The Active Capital report also focuses on those themes and trends that will mark the next investment cycle. In the last edition, the issue that was discussed was “resilience” and the possible trajectory of world markets after the pandemic. Right now, ESG (good corporate, social and environmental practices) and sustainability are the most important.
For individual buildings, there is an increase in sales for green-qualified office buildings, and this happens in cities located on opposite ends of the world: from London to Sydney and Melbourne (Australia).
In fact, sustainable finance will also show significant growth over the next period. Between January and June 2021, almost half of the world’s sustainable loans came from Europe. New central bank policy initiatives to facilitate the transition to a net zero emissions economy have supported the need for sustainable financing.
At the EU level, real estate financing activities must meet EU classification standards and meet selection criteria, among others.
