Spain is the most popular European property investment destination, with Germany coming in second.

Active investors see Spain as the top investment target in Europe, according to Knight Frank, with Germany following closely behind in 2015. According to a recent European study conducted by Knight Frank, 27% of over 150 investors chose Spain as their favourite investment target for the coming year, demonstrating the strength of the country’s recent recovery with prices remaining significantly below their prior peak. cars for sale

“The underlying justification for investing in Spain is even stronger than this time last year,” says Humphrey White, Head of Capital Markets at Knight Frank Spain. Prime CBD office rents have gained 20% in the last year, but are still over 40% below their 2008 peak, while dominant retail mall attendance and sales have been climbing for six straight quarters.”

Over a quarter of the guests (25.4%) identified Germany as their favorite destination. The results reflect the country’s brisk investment activity, with €30 billion invested in property in the first half of 2015, up 35% over the same period last year.

“The growth is driven by the increased flow of foreign capital into the country and the 50% increase in local investor activity,” says Joachim von Radecke, Head of German Desk at Knight Frank in London. Foreign investors’ stake of the German market continues to rise, accounting for about 60% of all transactions in the first half of 2015.

“With 78 percent of all office transactions recorded in these locations, we noticed the normal tendency towards the “big five” markets — Berlin, Frankfurt, Munich, Hamburg, and Düsseldorf.”

On the back of the continued recovery that has now extended to the UK regions, the UK performed well in this year’s poll, receiving 17.4 percent of the votes.

“The UK is significantly ahead of the rest of Europe in terms of the property cycle and has already witnessed significant yield compression,” says Chris Bell, Managing Director of Knight Frank Europe. However, it is promising that rental growth is re-emerging more widely across Europe, aided by the strengthening of occupier demand and the steadily declining availability of excellent quality space, which has been aggravated by the absence of development in the prior recessionary years.”