European Commercial Real Estate 180
Our latest European Commercial Real Estate 360 report has just been released, covering the economic outlook and real estate position across Europe.
Key findings of the November report indicate that;
- As more and more people are now fully vaccinated, the link between infections, hospital admissions and deaths has been broken. The main risk for Europe is now the evolution of the pandemic in the other regions of the world. Any bump on the road for other countries may have consequences on the European economies.
- While the fundamental story remains intact, the recovery will be neither fast or straightforward. We revised down our near-term profile for growth and revised up our forecasts for inflation, reflecting what we perceive to be predominantly a negative supply shock.
- Q2 2021 witnessed a surge in investment with levels comparable to those of 2018 or 2019. In comparison Q3 2021’s increase was moderate, almost reaching the average of previous years.
- The letting activity in Europe sharply accelerated in Q3. Volumes amounted to 6.56 million sqm in the 26 main markets, up 15% on last year. However, pre-crisis volumes and even long-term average will not be reached in 2021.
- Vacancy in the most sought-after office districts remained very low across Europe. Consequently, prime rents were not significantly affected by the crisis and remained mostly stable. Some markets even over-performed their pre-pandemic level.
Download the full report below.