European real estate offers attractive potential returns

Invesco Real Estate believes that the Central and Eastern European markets are forecast to deliver the strongest medium term returns on the back of +3% GDP growth.

However, a combination of bond rate movements, globalisation of capital flows and increased development pipeline are expected to push some prime Western European yields outwards over the next five years.

These findings are highlighted in the Invesco Real Estate spring 2011 House View Report which highlights a number of key themes Invesco Real Estate believes will be central to real estate investment in the upcoming year.

Greater differentiation between European countries is expected in the short-to-medium term, with Germany, Switzerland and the Nordics continuing to out-perform with GDP growth in the 2.5-3% range. Within the core European countries such as France and the Benelux, growth is expected to be slower, within the range of 1.5-2%.

Source: PropertyTalk.com