French property among positive performers in Europe

Overseas property investors with financial interests in European countries received an 11.8 per cent local currency return in 2005, according to research from Investment Property Databank (IPD).

Total returns measured by the index were more than one fifth higher than the 9.6 per cent level noted in 2004.

The company’s Pan-European Property Index showed a large diversity of sources for capital gains for investors, according to Ian Cullen, a director at IPD.

Mr Cullen said that the overall strong performance across Europe was reflected in the mixture of gains from UK and French property, as well as areas including Ireland, Norway and Denmark.

He added that strong levels of rental growth were seen in Spain, Italy, Portugal and the Netherlands.

“Last year saw the biggest spread we have ever recorded between these 13 markets,” Mr Cullen said, according to Reuters.

Retail properties were identified as one of the most profitable areas for overseas property investment, as this sector delivered the strongest returns in 11 of the 13 surveyed markets.

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