Invest Dest: European Investment Destinations, Info & Guides

European Investment Destinations


European Investment Destinations Overview


Foreign Direct Investment

Foreign direct investment (FDI) to Europe was steady in 2008, but trends show that this year, a slight decrease is likely. Once again, the UK was the most popular investment destination, grabbing about 18% of all FDI (21% according to the UK Trade & Investment Office) to the continent. The share is reportedly larger than a year earlier as London, the UK's chief investment destination is both preparing to host the 2012 Olympic Games and expanding its financial services sector.

France, Germany, and Spain were the next most popular European destinations; however, trends show that Poland, Russia, Germany, and Ireland are gaining ground. Automotive and electronics manufacturing were the industries that suffered most, mainly affecting FDI flow to the Czech Republic, Slovakia, and Turkey.

Real Estate Market

Overall, the Western European real estate market suffered minor declines relative to other regions of the world over the past 18 months. In fact, some markets actually saw a slight appreciation in prices, such as in popular French cities like Cannes and Paris. Most markets did see a slight decline in prices as evident in London, where a recent depreciation of the British Pound Sterling has lead to significantly cheaper home prices (in US dollar and Euro terms).

For the biggest discounts in housing prices, property investors should look to the emerging Eastern European market. Speculative real estate prices have corrected significantly in markets such as Cyprus and Prague (Czech Republic), which saw declines of 75% and 38% respectively in 2008.

Taxes & Law

According to the World Bank's Doing Business rankings, the UK is the most business-friendly and property investor-friendly market in Europe. The UK was closely followed by Ireland, Norway, Iceland, Finland, and Georgia. Taxes were lowest in Ireland while Georgia was the easiest country in which to both launch a business and register property.

Economic Growth

The most recent IMF economic growth forecast sees Europe contracting by 2% in 2009, more than most other regions of the world. Presently, economic growth seems to be slightly positive in the UK, while most other economies are still suffering declines.


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