European Commercial Real Estate 360
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