Expect a year of political uncertainty and the challenge of rising interest rates in Europe in 2017 Politics aside, however, the gradual tightening of some occupier markets seen in 2016 will continue in 2017, especially for better properties in the better locations Despite a gradual turnaround in the long-term interest rate trend, there is still scope for further yield compression in prime assets as rental growth and low interest rates by historical standards continues to make property look attractive 2018 or 2019, rather than 2017 are likely to be the years when the yield cycle starts to turn
European Commerical Real Estate attracted a record €86.8 billion of investment in Q4 2016; 5% higher than the previous record set in Q4 2015. The total for 2016 was €251.1 billion, down 10% on 2015. The largest investment market in Q4 was Germany with a record €19.8 billion transacted. Of Europes top markets, the Netherlands saw the largest year-on-year growth with investment in 2016 up 17% on 2015, meanwhile the UK saw the largest contraction with 2016 investment down 37% on the previous year.
CBRE’s EMEA Investment Guide 2016 is the definitive introduction to investing in commercial property in Europe, Middle East, and Africa and explores the investment trends and the terms of buying, selling, and leasing commercial property across 36 countries.
The Referendum outcome leaves Britain unsure of what it has done and the world unsure of the wider implications. The complex task of unwinding and resetting the UK’s relationship with the EU is likely to take many years and dominate UK and, possibly, EU politics for the foreseeable future. There are implications for the whole of the EU not just the UK and these could be both positive and negative.
The European Hotel Investment MarketView highlights the key trends pan-Europe in terms of hotel transaction volumes and yields. This particular issue includes an in-depth review of the Spanish market given the high level of investor interest. European hotel transaction volume year-to-date continues to reflect a testing 2016, down -34% year-on-year on 2015 Q3 2016 was profoundly more positive than the opening half of the year, down only -6% year-on-year on a strong third quarter of 2015 Germany valiantly remains the keystone and front-runner for European hotel liquidity in 2016 The greatest year-on-year country growth in hotel transaction volumes for Q3 was recorded for Spain (+162%)