Report: European Property Market Brief
New report „European Property Market Brief” prepared by AXI IMMO Group and Gerald Eve International.
A new report, „European Property Market Brief,” was prepared by AXI IMMO Group and Gerald Eve International.
The growth prospects for the European investment market are good, despite the political turbulence and uncertainty caused by Brexit and the upcoming elections in Western European countries. The results for Poland and the CEE region are the best for the last 10 years; the value of transactions exceeded EUR 11 billion in 2016, according to the new report „European Property Market Brief,” prepared by AXI IMMO Group and Gerald Eve International.
Report European Property Market Brief
“European Property Market Brief” is the outcome of efforts by 800 property professionals from Gerald Eve International, operating in the commercial property market in Europe. The publication contains opinions and hard data that allow us to compare market conditions and assess the risks and investment opportunities in major office and warehouse markets in Europe. The project’s partners analyzed the key trends and growth prospects for commercial property markets in 12 countries and 24 different cities.
The report provided in cooperation with our international alliance partners from Gerald Eve International is a reliable and extensive source of knowledge from local experts. They agree that the geopolitical situation affects investors’ decisions, but the still good economic situation and increases in the rental market, especially in Central-Eastern Europe, reduce the risks – comments Renata Osiecka, Managing Partner at AXI IMMO.
Office and warehouse rents in Europe
The publication „European Property Market Brief” enables, among others, following current trends on the occupier and investment markets in the office and industrial sectors. Regarding the office market, in 17 out of 24 analyzed cities, there is an expectation of an increase or maintenance in rents due to the limited number of new developments and growing demand mainly linked to the expansion of tenants. The decrease is estimated only for Warsaw and Istanbul. According to this research, the highest rental rates were in London (EUR 1365 p.a.) and the lowest in Antwerp (EUR 155 p.a.), Upper Silesia (EUR 162 p.a.), and Brno (EUR 167 p.a.).
On the warehouse and logistic market, an increase in prime rental rates is expected in 10 cities, including Prague, Upper Silesia, and Barcelona. There is no location among the analysed cities where rental rates are expected to fall in 2017. As in the office sector, the highest rental rates are in London (EUR 179.90 p.a.) and Dublin (EUR 102 p.a.). The lowest rental rates were recorded in Upper Silesia (EUR 162 p.a.), East Lyon, and Belfast (EUR 46 p.a.).
Investment market
In consideration of the level of tenant activity, which remains high, and the anticipated increase in rental levels, investors are increasingly active in commercial property markets in most of the surveyed countries. The general mood in the market is good, in spite of the uncertainty caused by the Brexit vote and the upcoming elections in France and Germany. In 22 out of 24 analysed cities, the demand for logistics products among investors is expected to grow. The prime yields have a downward trend or remain stable in all researched markets. Apart from the old continent and US investors, the new capital sources from Asia and the Middle East are noticeable in Europe, according to underlying experts.
Download the full version of the AXI IMMO Group and Gerald Eve International report, European Property Market Brief:
⇓ Report: European Property Market Brief PDF|2 MB
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