These are the countries with the most real estate investment potenital
Some of the worlds most advanced real estate markets are missing out on billions of pounds worth of additional investment, according to research out today.
The analysis, carried out by global property consultancy Knight Frank, found that Canada and German could be attracting a further $4.5bn (£3.4bn) and $3.1bn of real estate capital per year respectively.
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Through factors including language, shared religious beliefs and strength of currency, the analysis has shown that six European countries are attracting less inbound real estate investment than ought to be expected.
Top five countries that have potential for greater inbound real estate investment |
1. Canada – $4.5bn per year 2. Germany – $3.1bn per year 3. Switzerland – $1.8bn per year 4. Sweden – $1.8bn per year 5. France – $1.6bn per year |
William Matthews, head of commercial research at Knight Frank, said: "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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Ole Sauer, head of capital markets at Knight Frank Berlin office, said: "The potential inbound capital will have a hugely positive effect on domestic German investors and, more importantly, the overall positive sentiment surrounding our healthy real estate market."
Sauer added: "This confidence is already leading to a surge in new Grade A office developments, an area where Germany is definitely behind international competing markets who have a far greater number of state-of-the-art office complexes."
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