Filtered by Subscriptions: Europe Commercial Property Use setting Europe Commercial Property
Over the past three years office capital value growth in Dublin has far outpaced other euro-zone markets. Yet with the vacancy rate at its lowest point in 15 years, and GDP set to average 4.3% over 2016 and 2017, there seems scope for rental growth to …
6th January 2016
Commercial property investment in 2015 in the Nordics reached its highest level on record. This was driven by a large increase in the average deal size and strong growth in demand from foreign investors. We think that activity will remain strong in 2016, …
5th January 2016
Muted economic growth in the next two years will prevent Belgian high streets from seeing much of an improvement in demand for space. As a result, we expect prime retail rental values to rise by only 2.1% p.a. in Antwerp and an even weaker 1.4% p.a. in …
24th December 2015
The latest employment data show that office employment is far outpacing total jobs growth in most euro-zone economies. And, even in economies such as Germany and France, where office jobs growth has been weak, there are reasons to believe that rents …
23rd December 2015
After a record-breaking year in 2015, the latest data suggest that German industrial occupier demand will moderate next year. But, given supply constraints and occupier bases that are more aligned to distribution than production, we nevertheless expect …
17th December 2015
The loose monetary policy environment will help to underpin investor sentiment toward Spain in 2016, keeping property yields low despite an increasingly uncertain political backdrop. And with ample scope for rental growth, property values should …
15th December 2015
The outlook for Dublin industrial rental growth is supported by the fact that supply conditions are tighter than the 15% vacancy rate alone might suggest. And with ample scope for yield compression as well, total returns should move ahead of offices and …
10th December 2015
The construction of modern logistics space along the E20 corridor, south-west of Copenhagen, is transforming the region into the destination of choice for occupiers. With demand growth set to remain steady, we expect close to 2% p.a. rental growth for …
8th December 2015
Euro-zone retail sales are likely to remain fairly weak in the next couple of years. However, due to structural changes in the retail sector, expansionary retailers will continue to compete to secure high footfall locations, causing prime retail rents to …
4th December 2015
The latest data from Switzerland show that the removal of the euro exchange rate ceiling has taken its toll on the economy, and we expect that there is further weakness to come. Accordingly, even with employment in some office-based industries doing well …
2nd December 2015
The ECB has expressed concern at the high level of commercial property pricing. However, with alternative asset class yields set to stay low and the potential for further rental value growth, we think European property has at least another 2-3 years of …
27th November 2015
The impact of Spanish REITs on investment last year, and the growth of mergers and acquisitions this year, explain why headline figures appear to show a slowdown in Spanish property investment. Yet given that Spanish property still offers value, we expect …
24th November 2015
Since our last Analyst , the greatest change has been to our yield forecasts, which are now expected to decline further than previously expected in the next couple of years. We also envisage them staying at these low levels for longer. However, by 2019 we …
23rd November 2015
Compared to our last Analyst, we have increased our expectations for yield compression over the next two years. Yet in most markets, lower yields in 2017 will lead to greater upward yield pressure in the later stages of our 2016-2020 forecast period. …
20th November 2015
The French economy is growing, but slowly, and employment growth will therefore not be particularly strong. However, with signs of a recovery in occupier activity and a tight CBD market, we expect prime office rents in Paris to rise by a total of 9% in …
13th November 2015
The latest RICS Global Commercial Property Survey shows that around 70% of respondents believe that property in Germany and France is expensive. Yet while German capital values in particular have moved ahead of their euro-zone peers, we believe that …
10th November 2015
The economic recovery has perhaps been slowed by weaker demand from China and geopolitical concerns. However, property occupier markets are, on the whole, beginning to enjoy a better balance between supply and demand, meaning that rental growth momentum …
5th November 2015
Yield compression across each of the main property sectors picked up sharply in Q3, leading to the strongest quarterly fall in euro-zone all-property yields in the currency bloc’s history. With rental values picking up as well, capital values increased by …
Across the main German cities unemployment rates are close to their lowest levels in decades. Office rents do not look particularly high, office employment is growing, occupier demand is expanding and vacancy rates are falling. Therefore, the outlook for …
29th October 2015
French consumer spending growth is set to gradually improve in the next few years. This will support better rates of retail sales and occupier demand growth than previously anticipated, leading us to upgrade our retail rental growth forecasts for the 2016 …
27th October 2015
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
