European property investment fundamentals 'improving'

22 October 2007
The European commercial property market is in line with a rise in the overall economy, an expert has claimed.

Figures for the EU economy show it has an annualised growth rate of 2.8 per cent, according to Maria Grubmueller of Close Investments.

She says that record low unemployment has combined with "relatively modest" borrowing rates and a strong housing market to create a period of "broad expansion".

According to Ms Grubmueller, property market fundamentals "continue to improve across Europe despite current market fluctuations".

She told investors that returns in the UK are expected to slide "significantly" and so will be "well below those forecast for the eurozone market".

UK investors have apparently surged towards European investments in recent times, with an 80 per cent increase in purchases over the last two years.

Earlier this week, the International Monetary Fund warned that the UK housing market is in danger of a similar crash to the one experienced in the US recently.

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