A report to be published by PwC has found that property investors are fuelling a battle for assets that is driving prices up and causing fears of a renewed bubble. Data from CBRE, a global real estate provider, shows that investment in European commercial property hit the highest level since the credit crunch in 2013. Most transactions were in the UK and Germany, but CBRE’s data showed the fastest growth in peripheral economies such as Spain, Portugal and Ireland.
Joseph Kelly of RCA said, “Wealthy individuals, developers and insurers have become increasingly active across a broad range of property types, lot sizes and European locations”.
In the past 6 months Dublin’s property market has become one of the hottest according to PwC. Ireland has seen a flood of deals and investors are now beginning to focus on Spain instead.
Many have commented that prime European property has become overpriced. Joe Montgomery, European Chief Executive of the Urban Land Institute said, “With limited signs of tenant demand and rental growth, questions remain as to how far the recovery can go”.