| The very low level of European interest rates has been the main driver of recovery in European real estate over the last few years, as income-hungry investors substitute higher yielding prime real estate investments for low-yielding bonds. The European market has also been boosted by the emergence of sovereign wealth funds (SWF) and rising wealth and savings in Asia.
According to Real Capital Analytics, SWFs have invested €45 billion(HK$384 billion) in European real estate over the last five years. Due to their size, SWFs are increasingly dominant in transactions for large assets and in global gateway cities, particularly London. The main source of prime real estate investment is the development of new buildings...............................................Full Article: Source
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