european commercial

According to the latest RICS Global Commercial Property Monitor,investor appetite continues to grow in most European commercial property markets with Germany leading the way for a second consecutive quarter.

In Europe, German cities continue to feature strongly as attractive centres for funds despite the strong gains recorded in recent years which have pushed up valuations; as a result, around three quarters of respondents in Munich and Berlin (and a little less in Frankfurt) now view their local market as expensive to some extent. The latest data is consistent with increasing interest in some secondary locations as robust confidence in rental growth prospects help support more positive views on pricing.

Commercial property continues to perform well in Spain and the UK, with both capital values and rents expected to rise further over the next year, albeit it less so than previously.

european commercial 2

European commercial property investments increase 25 pct in 2015

In Ireland, Portugal and Hungary robust investment market trends are coupled with positive occupier demand, as job creation is driving demand for leasable space, causing availability to fall and pushing rents higher.

In the Netherlands, Italy and France, investor demand (in particular from foreign buyers) continues to rise across all sectors, especially in the office and retail sectors.

The Q1 2016 RICS Global Commercial Property Monitor shows positive sentiment across developed economies, with occupier and investment demand for commercial real estate increasing, in particular in Europe. In emerging markets, commodity exporters continue to struggle, even as market conditions in China appear to be stabilising after the measures taken by the Chinese government to support the economy in the wake of growing concerns over the risk of a severe slowdown. The outlook across many Asian markets remains cautious.

Source:RICS

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