Commercial European property catching the eye of Asian investors

Estimates suggest that up to £10bn could be invested into commercial property in Europe by Asian investors  and that figure would just apply to UK real estate alone.

It’s thought that up to 20 insurance groups from China and Taiwan are keen to find the right investments, all of which have more than enough capital behind them to invest big time in European property.

It comes after Ping An, a Shenzhen-based insurance firm, purchased the Lloyds of London building for a fee of £260million. The company, with assets in the region of £390bn, it’s thought will pave the way for other such insurance giants wishing to invest internationally as Ping An’s deal made them the first Chinese insurer to buy property in Europe.

China’s economy has been at the forefront of growth in terms of world economies in recent times, but until last year government regulations made it unachievable for Chinese companies to invest overseas. However, those regulations changed last year hence Ping An being able to lead the way by purchasing Lloyds of London building.

While investing in real estate in some of Europe’s most major cities is a competitive market, many Asian investors certainly have the capital and desire behind them to make it a success. However, certain regulations in China also dictate that Chinese investors are restricted  at least at the moment  in terms of where they can invest.

Mainland China’s approved locations include London, Paris and Germany’s largest cities. On the other hand, regulations for Taiwanese investors restrict them even further to just London and Frankfurt.

However, with the Spanish government’s announcement that they are to sell off some 15,000 state owned properties, one can’t help wonder if this will present any opportunities for investments in Spain.

After all, the country is crying out for investment and that’s what the aim of the government’s plans to sell the properties is: to generate money for Spain’s economy.

On top of this, Asians are increasingly taking an interest in the residential side of Spanish property. Spanish estate agents and developers are aware that Chinese buyers are increasingly investing in Spanish property; taking advantage of the bargain property prices, and are therefore targeting them.

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