2022 is expected to be a record year for global cross-border real estate investment, according to Active Capital research by global property company Knight Frank.


With Brexit in place, British citizens are now allowed to stay for 90 days within a 180-day period in the EU member states. For Britons who used to live in their European homes several months a year, the new legislation meant selling their properties and bringing the capital back home. That also translates to fewer real estate transactions in the region, aided in part by increased taxes for British citizens living or earning overseas in countries like Spain and Italy.


Where the new set of rules saw overseas Britons repatriate their assets, a great number also found order in the chaos by looking for properties elsewhere that offered better value for money and fewer movement restrictions, such as in Montenegro, Morrocco and Turkey, as well as the United States, Canada and the Caribbean, according to a report by The Independent.

With the luxury of remote working, induced by the pandemic, 2021 saw a surge in overseas property investments. Residential prices saw an increase due to the demand in the second home market, according to data from global property company Knight Frank. Overall, the number of housing transactions increased in 7 out of the 12 European Union countries in the third quarter of 2021, covered by the European data commission.

According to Active Capital research by Knight Frank, 2022 is set to be a record year for global cross-border real estate investment, with Europe, the Middle East and Africa, or the EMEA region, expected to capture more than 60% of all cross-border activity. In Europe, UK, Germany, France, and the Netherlands are predicted to be the most popular destinations for cross-border capital investments, with almost half of the investments coming from the US. The region has seen a dramatic increase in multifamily housing investments in the past three years with 45% cumulative growth, according to real estate services company CBRE. Overseas investment in the region nearly tripled over the same period to about €34.24 billion and is expected to continue as well, the report said.

In UK, CBRE expects the real estate industry on a path to recovery in 2022, with total returns for all UK property forecast at just over 6%. This is helped by a growing economy and strengthening of the labor market, CBRE’s UK Real Estate Outlook report said. Commercially, the office sector remains the most preferred property type for European and UK investors in the country in 2022, according to UK Investors Intentions Survey by CBRE. Logistics was the second-most favored choice of the investors, with about 32% of the participants expressing interest to invest in the sector.

News Sources 

https://www.independent.co.uk/money/money-transfers/surge-in-overseas-property-purchases-put-money-transfers-in-the-spotlight-b1919662.html

https://www.independent.co.uk/money/money-transfers/buying-property-overseas-uncertainty-home-abroad-clear-currency-b2002941.html

https://www.cbre.co.uk/research-and-reports/Capital-Flows-into-European-Multifamily-Housing

https://www.glasgowchamberofcommerce.com/news/news/2021/december/17/uk-real-estate-to-see-marked-recovery-in-2022-says-cbre/

https://www.cbre.co.uk/research-and-reports/2022-UK-Investor-Intentions-Survey

Author

  1. avatar
    Caz McDonald