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Office space in Paris’ CBD is in short supply and tenants are having to compete for larger floorplates. This will push prime rental values up at above-inflation rates of 3% and 4% respectively in 2018 and 2019. … Steady first half cloaks the positive …
4th August 2017
With better rental growth prospects for prime property in Italy, compared to secondary, we think that a continued focus by investors on prime assets will see yields edge down over the next 18 months. … Investors focus on prime property in …
2nd August 2017
The 15% annual rise in European (ex. UK) Q2 investment was wholly dependent on the logistics sector. Indeed, activity in the office and retail sectors fell. But with investors in a buoyant mood, 2017 is likely to be another record year for investment, …
27th July 2017
Very low Grade A vacancy and steady net absorption are likely to see Brussels rental growth forecasts for this year blown out of the water. We think rents could climb by 12% and a further 3% in 2018. … Brussels prime office rental prospects looking …
25th July 2017
Improving occupier demand and falling vacancy rates in Copenhagen bode well for office rents. This means that investors can feel more confident in taking advantage of higher yields on secondary stock in central locations in order to generate higher …
21st July 2017
Perhaps against the prevailing perception, rather than retail, it has been the manufacturing sector that has been a key driver of rising industrial demand in Germany over recent years. With a supportive economic outlook for occupier demand, we envisage …
18th July 2017
European investment activity is likely to have risen again in Q2. But, while retail funds are competing aggressively for core assets, opportunistic investors appear to be rotating out of low-yielding prime assets. We see this as an attempt to achieve …
14th July 2017
Athens recorded some of the highest property total returns in the euro-zone last year. And with the potential for prime rents to edge up and yields to fall, it could be one of the best performing markets in the 2017-21 period. But with debt relief talks …
12th July 2017
Strong economic growth in Sweden means that, with only a limited quantity of prime product for sale, investors are being pushed up the risk curve in order to get their capital into the market. … Investors moving up the risk curve in …
7th July 2017
The yield spread between prime and secondary Spanish retail property has widened recently. With a slowdown in consumer spending on the cards, a cautious approach to secondary assets makes sense. … Investors cautious about secondary retail assets in …
5th July 2017
Early indications suggest that prime yields fell again in Q2, which is likely to make property valuations look even more stretched. While this may increase the perception that yields cannot fall further, we think that they will continue to drift lower for …
3rd July 2017
With President Macron’s parliamentary majority putting him firmly in control in Paris, the prospects for the French economy are pretty good. The economic recovery will continue to boost firms’ confidence, meaning that the outlook for French occupier …
28th June 2017
With a large pipeline, concerns about future rental growth are probably behind the flat-lining of prime Dublin office yields. But while rental growth will ease, we don’t think rents are about to fall. … Are investors questioning rental growth prospects in …
27th June 2017
Amsterdam office vacancy has dropped from 17% to 8%, but we expect it to fall to 4% by 2019 as limited completions are outstripped by stock removals. This will drive a 15% lift in prime rents and will also support rental growth in the other Randstad …
23rd June 2017
Prime rents in Istanbul have come under pressure from various headwinds recently. And with the prospect of further rises in vacancy, competition for tenants is likely to see rents move lower still. … Prime rents in Istanbul have further to …
22nd June 2017
The Finnish economy is benefitting from a cyclical recovery in the euro-zone and Russia. This is likely to attract more core capital to Helsinki, given its appealing yield and solid rental growth prospects. … Improved economic outlook in Finland emboldens …
16th June 2017
A pick-up in the Swiss economy should improve demand for office space. However, the size of the development pipeline means that it could take longer than expected before prime office rents in Geneva and Zurich find a floor. … Further headwinds for Swiss …
13th June 2017
In recent years, strong occupier demand has helped prime office rents in Bucharest hold up in the face of a healthy development. But by end-2018, completions totalling 18% of existing stock are expected to be delivered. As a result we think rents are more …
9th June 2017
Shopping centre development in Warsaw is picking up pace. While the city’s growing wealth and low vacancy rate mean that it can accommodate more retail floorspace, we have nudged down our rental growth forecasts for the next couple of years in order to …
8th June 2017
Prime euro-zone property yields still have scope to fall over the next 18 months. However, with a stronger outlook for the euro-zone economy, we have increased our forecasts for government bond yields. As result, we now expect property yields to find a …
2nd June 2017
In the last few months, economic growth prospects have improved across Europe, boding well for rental growth and pointing to sharper falls in property yields in the next 12-18 months. But the improved economic growth outlook also means that monetary …
Prime German retail rents have stagnated recently, in spite of a healthy economic backdrop. In the absence of a pick-up in occupier demand, it is difficult to see strong rental growth in the years ahead. … What is behind the stagnation in German retail …
26th May 2017
Higher government bond yields and further falls in commercial property yields in Q1 mean that property valuations have begun to look increasingly stretched. Whereas 23% of the markets we cover looked overvalued at the end of Q4 2016, 37% look overvalued …
24th May 2017
Strong employment growth in the euro-zone augurs well for office occupier demand. Coupled with limited net additions, we think euro-zone prime office rents will move higher in the years ahead. … Will strong demand continue to lift euro-zone office …
19th May 2017
Investment in euro-zone commercial property rose by 11% y/y in Q1, boosted by a surge in activity in Germany and Spain. And with yields falling, and capital values rising, at close to the rates seen in recent quarters, the market has seemingly found a …
12th May 2017
Economic performance has typically improved in the last few months, but this has only translated into rental growth in a few locations. Sentiment in Norway and Russia saw notable improvements, although the converse is true in Turkey, which continued to …
Prime office rents in Milan recorded their biggest quarterly gain since 2008 in Q1, with a lack of quality space a key driver. But with completions starting to rise, we don’t expect this to be repeated. … Jump in Milan office rents unlikely to be …
4th May 2017
Investment activity in Mainland Europe started the year strongly and demand looks similarly robust so far in Q2. And as occupier fundamentals continue to strengthen, we expect valuations will become increasingly stretched in the next 12 months, as strong …
3rd May 2017
A jump in the development pipeline means that the outlook for office rental growth in Vienna is now weaker than we previously thought. And with valuations starting to look a little stretched, we think that capital values are likely to stagnate next year …
27th April 2017
With Portugal’s economy starting to recovery, we expect prime Lisbon office rents to begin a sustained shift higher, supported by rising occupier demand and a limited development pipeline. … Prime Lisbon office rents set for a new upward …
25th April 2017
With the Russian economy returning to growth, a gradual improvement in Moscow occupier markets should support a further recovery in investment volumes, pushing prime yields down. … Improving economy bodes well for Moscow real …
21st April 2017
Our upwardly revised forecasts for 10-year euro-zone government bond yields imply a sharper rise in prime property yields towards the end of our five-year forecast horizon. That said, the stronger economic outlook should ensure that prime yields edge down …
20th April 2017
Oslo’s house price boom is likely to indirectly support the office market, by driving a level of office-to-residential conversions that will almost equal the delivery of new office space in the next few years. Coupled with a gradual pickup in expansionary …
13th April 2017
German cities have seen some of the largest falls in industrial yields across Europe in recent years, pushing the spread over offices down to new lows. Given structural changes in the market, this need not be cause for alarm, although we would be most …
12th April 2017
Upgrades to the outlook for employment in the Czech Republic for 2017 and 2018 mean that office vacancy rates will stay close to current lows, driving rental growth of 3.5% in 2017 and 1% in 2018. … Prague office rental growth prospects revised …
7th April 2017
Investor appetite for commercial property in Spain appears to be fading. But with valuations still some way from looking stretched, and a positive outlook for rents, we believe that prime property should continue to offer some of the best total returns …
5th April 2017
Strong investor demand for core stock is pushing prime yields in Finland close to overvalued territory on our valuation measure. However, we think that industrial yields can fall into this value bracket without investors needing to panic. … Helsinki …
30th March 2017
With limited development pipelines, office markets in Frankfurt and Hamburg look set to tighten further over the next three years. However, rising completions in Berlin could see vacancy start to rise, limiting the upside for rental growth. … Could office …
29th March 2017
We expect Brussels office rents to climb slowly over the next five years. But even if this proves too tall an order, we think the city’s high initial yield should make it attractive for prospective investors. … Brussels offices offer solid returns for …
24th March 2017
The Italian economy has started the year on a strong footing. But GDP and employment growth are expected to slow this year. Combined with a rise in completions, that will act as a brake on the pace of any rental recovery in Milan’s office market. … Slow …
23rd March 2017
The findings of CBRE’s Investor Intentions Survey support some of the key themes and key calls that we have highlighted for 2017 in European real estate markets. … Investor intentions show overall demand staying …
17th March 2017
Weaker real wage growth in France will cause consumer spending growth to slow over the next couple of years. This will lead to softer demand for prime high street units in the French regional cities, causing rental growth to slow in 2018 and 2019. … …
15th March 2017
The sharp rise in prime Copenhagen retail rents is difficult to square with national consumer sector trends. But it does seem to reflect Copenhagen’s relatively strong housing recovery and a decent contribution from tourism. We believe the outlook for …
10th March 2017
Higher Budapest office capital values mean that new development is increasingly viable, with developers now in-line to make healthy profits. But, higher levels of supply will cause rents to flatline in 2019 and 2020. In the interim though, we think rents …
8th March 2017
Robust economic growth and a limited supply pipeline will see Stockholm prime office rents record further gains on top of 2016’s surge. And although a hawkish turn from the Riksbank later in the year would curb yield falls, overly dovish monetary policy …
3rd March 2017
Concerns about higher inflation and potential rises in interest rates have seen bond yields rise in the last few months. Nevertheless, we think the outlook for bond yields and therefore, property yields, is fairly sanguine. This will mean that property …
27th February 2017
We see euro-zone GDP growth slowing this year due to the drag from higher inflation and political uncertainty. With no monetary policy tightening on the horizon, further falls in prime yields will continue to drive capital values higher over the next two …
Stagnant rental values in the prime Paris retail sector over the past couple of years have seen the view that rental values have reached a ceiling gain momentum. But we believe that the factors which caused the 2011-2015 surge in rents are likely to come …
20th February 2017
Bond yields increased in Q4 and have generally climbed further since. This has meant that, despite a counter-balancing effect from lower equity dividend yields, property yields have begun to look overvalued in a wider range of markets and sectors. … …
17th February 2017
Strong demand resulting from Ireland’s economic recovery combined with limited supply has pushed prime industrial rents in Dublin up by 45% since 2013. Even so, with these tailwinds set to continue, we think rents will move higher still. … Rise in Dublin …
15th February 2017
