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Opportunities in European real estate amid low interest rates

Investors are going for higher-yielding prime property investments in place of low-yielding bonds in Europe, giving rise to potential openings in secondary property assets.

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The European market has been boosted by the emergence of sovereign wealth funds and rising wealth and savings in Asia. Due to their size, the funds are increasingly dominant in transactions for large assets and in global gateway cities, particularly London (above).

THE very low level of European interest rates has been the main driver of recovery in European real estate over the last few years, as income-hungry investors substitute higher-yielding prime real estate investments for low-yielding bonds. This has driven up the prices of these assets to such an