Filtered by Subscriptions: Europe Commercial Property Use setting Europe Commercial Property
Investment activity appears to have plateaued in Central Europe. But if one includes ‘platform deals’, the picture is more positive. That said , there are factors holding volumes back, including a mis -match between buyers’ and sellers’ price …
22nd October 2015
This report is only available as a PDF. Click to download. … Cities to see stronger population growth than Germany as a whole …
19th October 2015
Since early 2012, the rental premium commanded by prime office space in Munich over that in Hamburg has grown by almost a third. However, in the next few years both demand and supply fundamentals suggest it is more likely to rise further than to go into …
14th October 2015
The Polish regional cities are seeing strong demand from the BPO/SSC sectors. But the office space development pipeline has responded equally robustly. Therefore, although demand growth is set to remain strong, if not strengthen further, rental values …
13th October 2015
Nordic investment activity has already surpassed 2014 levels as exchange rate weakness in the region has created improved perceived value for foreign investors. We expect foreign buyers to account for a growing share of activity and to be willing (and …
12th October 2015
With government and corporate bond yields at all-time lows in most of Europe and equity dividend yields close to their long-term averages, European commercial property looks relatively well-priced. The greatest value appears to be in some of the …
8th October 2015
There is a decent correlation between economic competitiveness and property pricing across Europe. Yet while some markets look mispriced based on this comparison, that’s partly explained by the fact that some of the factors that drive competitiveness are …
5th October 2015
Buoyed by strong economic conditions, industrial occupiers in Central Europe are expanding, leading to falling vacancy and rising rents. However, supply is responding. We expect this to curb rental growth in Poland from 2016 and the Czech Republic from …
1st October 2015
The cross-border nature of automotive supply chains means that it is not just Germany that may be affected by the Volkswagen scandal. The Czech Republic also looks exposed. While automotive related production tends to be in peripheral locations rather …
28th September 2015
Political factors pose less risk to the economic outlook in Portugal than in Spain. Nevertheless, the underlying economic outlook for Portugal is weaker, which will weigh on occupier demand in Lisbon. The retail sector could buck the trend however, as …
24th September 2015
The combination of strong growth in tourism and rapid population growth has driven up retail rental values in the Danish capital. We believe these factors will support further strong demand for prime high street units, driving rental values up by a …
23rd September 2015
Both the regional election in Catalonia later this month, and the general election in December, represent a risk for property investors in Spain. Yet there are a number of reasons to believe that the results will have less impact on the economy than …
17th September 2015
The latest euro-zone labour market data show that office jobs are a key driver of overall employment growth in most member states. Moreover, even where office employment is relatively subdued, limited development pipelines mean that the outlook for office …
15th September 2015
Improving prospects for occupier demand and low vacancy in the Zuidas submarket mean the outlook for prime Amsterdam offices has strengthened. If our forecasts prove correct, total returns in the 2016-19 period will reach 7.9% p.a., which should …
9th September 2015
Weakening demand growth, an influx of new supply and the sharply depreciating lira are all set to have a negative impact on the office occupier market in Istanbul over the coming years. As such, the outlook for office rental values is firmly negative. … …
8th September 2015
We do not believe that the recent turbulence in financial markets heralds a major global slowdown that would push the recovery in European property markets into reverse. Moreover, it has not changed our view that the impending rise in the US Fed Funds …
4th September 2015
The Swedish consumer sector is set to perform strongly in the coming years. However, the completion of the Mall of Scandinavia later this year will keep prime retail rental growth in Stockholm muted between now and the end of 2017. … Are we too …
2nd September 2015
The Emerging European markets are beginning to diverge, with strong economic growth expected to support high levels of occupier activity in Poland, the Czech Republic and Romania, but Russia and Turkey set to underperform over the next few years. …
28th August 2015
Compared to our last Analyst, we have moved up our rental growth forecasts for offices, reflecting limited development pipelines and falling vacancy rates. Rental growth across all sectors, combined with our expectations for further yield compression, …
An analysis of current office rental values relative to estimates of their equilibrium levels suggests that Madrid, Barcelona, the main German cities and Brussels offer the best medium-term growth potential. At the other end of the spectrum, Helsinki, …
19th August 2015
Finland’s year-long recession has been reflected in weakening demand for commercial property space. Yet, as occupiers have traded-up, prime property has performed exceptionally well. However, we expect the link between employment and rental growth in late …
18th August 2015
Economic growth has typically strengthened, but Russia continues to fare poorly and there are some signs of weakness emerging in Norway and Turkey. A lack of major deals in emerging Europe has held back investment levels, but Scandinavia and the UK …
14th August 2015
Euro-zone all-property yields fell by just 3bps in the second quarter, their slowest quarterly decline since 2013. We believe this is likely to mark the start of a period in which yields now edge down more slowly than over the past 12-18 months. … Slower …
10th August 2015
Euro-zone commercial property investment recorded another strong quarter in Q2. Nevertheless, the rate of yield compression slowed sharply, with aggregate euro-zone all property yields declining by just 3bps, compared to an average of 9bps over the …
6th August 2015
Across Europe, only in a few core markets do a majority of RICS members believe that property valuations are expensive. While that boosts the case for commercial property investment generally, it also suggests that due to a limited scope for yield …
3rd August 2015
Early interest rate rises in the US and UK will push up bond yields globally. But, with further monetary easing still likely in Europe, we do not expect much of an effect on European assets. We therefore expect European property yields will slowly drift …
30th July 2015
The majority of European countries recorded a rise in commercial property investment in the second quarter, with the peripheral euro-zone markets generally leading the pack. Despite the latest RICS survey showing that investor sentiment indices have …
28th July 2015
The spread between government bond yields in Germany and the UK is less indicative of the relative strength of the two countries’ economic outlooks than it was in the past. As such, in contrast to most of the last 15 years, the spread between German and …
22nd July 2015
The Polish economy has started the year positively, supported by the recovering consumer sector. We expect further improvement in consumer finances to support retailer demand growth. The effect on rents will be most pronounced in Warsaw, where vacancy …
21st July 2015
Greece’s future in the euro-zone is still far from secure, and upcoming general elections in Portugal, Spain and Ireland could lead to significant political changes. Nevertheless, given that property markets have generally shrugged off such risks so far, …
16th July 2015
Subdued economic growth and similarly weak office sector demand have resulted in muted take-up volumes in Brussels. The slow first half of the year means that we have trimmed our rental growth forecasts for 2015, and there are also growing risks to our …
14th July 2015
Robust growth in the consumer sector will begin to translate into retail rental growth later this year. This will spur investor demand and, ultimately, force yields 40bps lower by the end of 2016. … Czech retail performance prospects heating …
8th July 2015
German logistics occupier demand should increase over the coming quarters. Yet with the sector already facing pressure from rising wages, occupiers are set to take up space further away from prime areas. As a result, we expect German rental value growth …
7th July 2015
Emerging European financial markets have generally shrugged off the announcement of a Greek referendum. Yet while there are reasons to believe that Emerging Europe is less exposed to Grexit risks than in the past, property markets in Bucharest and …
2nd July 2015
Today's PMI readings were slightly weaker than expected but do not change the general picture, which is that growth is recovering on the back of both an improvement in external demand and a policy induced pick-up in domestic activity. … How might …
30th June 2015
Investment flows have been rising in the Nordics, reflecting both large single-asset deals and, increasingly, a number of major portfolio transactions. The growing willingness to transact secondary property implied by these portfolio deals reflects …
25th June 2015
A combination of spare capacity and the ban on Sunday trading will limit retailer demand in Hungary in the next year or two. Thereafter, new shopping centre developments will prevent rental growth from returning to the rates that were typical prior to the …
24th June 2015
Weak rental value growth and limited inward yield shift will restrict capital value growth in Switzerland. As a result, when combined with a low income yield, over the next five years Swiss property will underperform the other European markets. … Swiss …
19th June 2015
Recovering economic growth in the euro-zone will support a revival in occupier demand. But, whilst elevated availability will limit rental growth in the office and industrial sectors, the relative lack of space will mean that prime retail rents grow more …
16th June 2015
There are now concrete signs that the slowdown in the Norwegian oil industry is beginning to feed through to the wider economy. As a result, we expect the upwards trend in Oslo office market rents to slow in the next couple of years. … Oil sector slowdown …
12th June 2015
The boost to euro-zone office rents stemming from a pick up in economic growth and employment over the next year or so will be partially offset by high vacancy rates. Nevertheless, the fact that vacancy rates are set to fall should still support the …
8th June 2015
The non-euro-zone economies and property markets have generally started the year positively. We expect further improvement in GDP growth in most countries to support expansionary occupier demand, with prime space initially being the greatest beneficiary. …
4th June 2015
Compared to our last Analyst, we have moved up our rental growth forecasts for 2015 and 2016, reflecting limited development pipelines and upgrades to our macroeconomic forecasts. The rental upgrade for this year, combined with our expectations for …
Non-Europeans are playing an increasingly important role in driving property investment volumes in Europe. The weaker euro and reports that non-Europeans tend to have lower target returns suggests that their influence will continue to grow. … Non-European …
28th May 2015
The Czech and Polish economies are motoring along nicely. However, the latest IPF Consensus Survey shows that our view, that solid demand fundamentals will be swamped by excess supply, causing rents to fall, has now become consensus. … Office rents in …
27th May 2015
Economic growth appears to have slowed in much of non-euro Western Europe in Q1, but maintained a solid pace in Emerging Europe, with the major exception of Russia. Russia’s troubles are also evident in property investment volumes. The sharp drop in …
20th May 2015
Despite euro-zone all-property rents recording their strongest rise since 2007, it’s too soon to say that rental values have finally lifted off. Rather, with economic and employment growth set to remain relatively subdued, over the coming years we expect …
18th May 2015
The pace of euro-zone all-property yield compression picked up in Q1, driven mostly by the office and industrial sectors. At the all-property level euro-zone rental values rose by 1.2%q/q, but that was generally the result of strong rises in a few key …
14th May 2015
The Hungarian economy stands to see above-trend growth rates in the coming years, supporting occupier demand. With the prospects for rental values turning positive, yields look cheap on a historical basis and are set to fall markedly in the next two …
13th May 2015
Amidst a slowly improving economic backdrop, prime euro-zone office rents have risen in recent quarters. We expect further gradual increases in occupier demand, coupled with constrained supply, to drive office rental growth of 1.7% in 2015 and 2.6% in …
8th May 2015
