ABSTRACT

This chapter analyses real estate investment trusts (REITs) in the European region, using case studies from the UK, Spain and Poland. The key to understanding a REIT market is to understand the size and relevance of the domestic commercial real estate market within the economy. REITs in the UK, being a developed REIT sector in the European region, is particularly interesting in that the UK started its REIT era with an existing and unlisted fund market, acknowledged through transition legislation which was then amended as REITs became established and transition arrangements were no longer required. REITs in Spain, being a developing REIT sector in the European region, shows how quickly a market may develop when the legislative structure allows considerable flexibility. REITs in Poland, being an emerging REIT sector in the European region, serves to illustrate how the basic pre-requisites for a REIT market are so well established internationally than the suitability of an emerging market can be easily determined.