South Korean Real Estate Investors Attracted To Central European Market

South Korean investors have been among those who have trained their focus on other real estate markets, instead preferring the more stable markets of Europe. Lexology reported that this is a shift away from their traditional move to US assets.

The trend is expected to pick up with more than 75% cross-border investments aimed towards European nations instead of American ones.

South Korean institutions have been seeking safe investments. Much like Singaporean companies and institutions, they are looking to diversify portfolios since their local real estate investments aren't offering what they're looking for-sufficient size, the right yield, and the correct geographic diversification.

Singapore has since overtaken China as the biggest source of outbound real estate capital in the Asia-Pacific region, while South Korean investors have become more active players in European real estate.

The South Korean investment surge into European properties arrived just as the Chinese are pulling back their own investments. Japanese investors are only starting to realize the European market's potential.

Since the Chinese government's encouragement of local investment and spending, their outbound capital dropped to 80% of investment volume since March 2019.

One such recipient of the South Korean pivot could be Greece, where an influx of new investments is arriving after their recently-concluded elections. Asia Times reported that the European country is receiving investments from new partners that include the Middle East. More importantly, these new investors are ones knowledgeable about real estate and tourism.

Investors from the Arab Mediterranean Sea economies are expected. Morocco and Lebanon can benefit from a resurgent economy like Greece's. Saudi Arabia and the United Arab Emirates are pleasant additions, which should be interested in the Mediterranean region given their country's position, after all.

The Mediterranean-Red Sea-Indian Ocean area is considered an important economic route for the Arabian nation. It extends from North to East Africa and to the Arabian Peninsula. Greece serves as a staging post for Middle Eastern investors who are looking to trade with parts of Central and Eastern Europe.

Greece, along with another emerging player in Poland, could be the focus for these investors who are looking to diversify their assets. Poland's attractiveness stems from their impressive 5% GDP growth and a "diverse" economic base.

Population centers like Warsaw (1,702,139), Lodz (768,755), Krakow (755,000), Katowice (294,510), and Gdansk (227,306) have become popular choices with investors. It's no wonder real estate transaction numbers in Poland were at 20% in 2018. 

© 2019 Business Times All rights reserved. Do not reproduce without permission.
Sign Up for Newsletters and Alerts