Eurozone economies will continue to improve slowly in 2015 with Spain and Ireland to the fore, France and Italy lagging and Germany resurgent. Non-euro EU countries will outperform. The fall in oil prices provides a potential upside for most European economies. It is also broadly positive in its impact on Europe’s real estate markets. Prominent areas of uncertainty include upcoming general elections, geopolitics and where oil prices will eventual settle down. Headline inflation to remain negative through most of 2015 in many countries. Heightened risk appetite amongst investors will persist in 2015, resulting in further growth in investment activity; with Italy and Portugal in particular benefitting. Office leasing volumes, and prime rental growth to strengthen and become more widespread through 2015. Retailers pursuing dual strategy of developing online platforms and new store openings in increasingly competitive environment. Hotel occupancy to benefit from economic recovery, with euro depreciation attracting growing US-originating traffic.
By: Richard Holberton, Senior Director, EMEA Research, CBRE Executing workplace strategies in locations and buildings of differering quality is a growing issue on the corporate agenda. In quite a lot of European markets it will continue to be formed against a background of limited choice of prime space.
Office take-up rose strongly in the final quarter of 2014, to push the full-year figure 4.7% higher than in 2013 UK regional markets among the strongest risers over the year along with Dublin and Berlin Rents rising slowly; major markets such as London, Stockholm and Frankfurt benefitting along with several regional markets Rental increases mostly confined to core prime districts Supply picture mixed: development activity still generally low, but vacancy up in some areas of relative demand weakness