Property Investment in Europe Falls Sharply

According to the latest expert predictions, direct investment into real estate in Europe has fallen by 55% over 2008 in comparison with the previous year. The fall in property investment was down to a number of reasons – the collapse of large organisations such as the Lehman Brothers causing a rippling effect into other markets, volatile exchange rates around the world, and the general global economy.

The last quarter of the year is typically the most busy for the property market, however in Europe in the last quarter of 2008, transaction volumes were down on the previous quarter by a third.

Given that the global economy is not looking as rosy as it was this time last year, with credit getting harder to come by, and many investors losing confidence, it is no surprise that the property market has been slowing. Analysts are predicting that the early part of 2009 will remain slow, although the market may start to improve towards the end of 2009.

The slowdown has appeared to affect Western European countries the most, with Eastern European properties tending to hold their prices a little better. The countries that have seen their real estate market worst hit have been the UK, Germany and Spain.

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