European Real Estate Is Entering Bubble Territory, Fidelity Says
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Inexperienced, yield-hungry French retail investors are pouring money into real estate funds, pushing up prices for the best European commercial properties to unsustainable levels, according to Fidelity International Ltd.
Inflows into so-called societe civile de placement immobilier, French collective-investment vehicles that purchase properties and other assets across Europe, reached 5.6 billion euros ($6.5 billion) last year, a third higher than in 2015, Fidelity said in a report. Money is pouring into these funds in search of higher returns compared with stocks and bonds and because of their favorable tax treatment.
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Source : European Real Estate Is Entering Bubble Territory, Fidelity Says