Investors to build on property drive

Direct real estate investment in Europe hit ?47.9bn in the first half of this year, and the market is set to open further to individual investors.

According to Jones Lang LaSalle, this was a 4 per cent improvement on the first half of 2004, and came from investors across the spectrum. The firm predicted total volumes for 2005 of more than ?100bn.

Tony Horrell, chief executive of European capital markets at Jones Lang LaSalle, said private investors would have increasing access to direct real estate, as the European market moved towards the ‘REITS world’ of the US, referring to the Real Estate Investment Trust vehicles which are popular there.

He added that key drivers in the expanding market were cross border investment and investment from outside the European region, “showing that the world itself is becoming more of an international marketplace”.