Open Access

Andrew Beer

• In recent years a higher degree of professionalism has become attached to real estate investment and thus the capital markets, too, in Europe. Propertyinvestment has experienced a huge increase inIn recent years a higher degree of professionalism has become attached to real estate investment and thus the capital markets, too, in Europe. Propertyinvestment has experienced a huge increase in volume, and real estate as anasset has become very popular as a result of rising property values and largeprofits for investors. Especially the United Kingdom has seen a sharp increasein prices for commercial and residential real estate. The property boom in the UK has suffered considerably from the subprime crisis that emerged in the US in August 2007. After the crisis spilled over to Europe a credit squeeze was generated. In this diploma thesis the author aims to give an up-to-date analysis of how the subprime crisis developed and what impact it has had on the property investment sector in the UK…