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 September report indicate that;
- Europe has the greatest room for growth to exceed market expectations, powered by an accelerating vaccine programme and supportive policy mix. We expect a prolonged accommodative stance from the ECB and a valuable pro-cyclical growth boost from the Next Generation EU recovery fund
- Q2 2021 witnessed reversal of decline in commercial real estate investment, which was created by the positive context of vaccination and release from lockdowns
- Thanks to a much more dynamic take-up in Q2, more than 4 million sqm was taken-up in Europe’s 32 main markets, which is in line with the same period last year (-2%), despite significant discrepancies among markets
- Logistics is thriving both for investment (+62%) and leasing markets (+30%) in H1 2021. Vacancy rates are still low at 5% pushing rents up. Yields are still compressing in most markets
- While retail investment has continued to be slow due to the cautious attitude of investors, retail industry is now resuming with the full reopening of retail activities across Europe
