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
We live in an age of cities. In emerging markets, they are hubs of explosive growth in production and distribution facilities. In the developed world, cities have reinvented themselves as vibrant live-work-play destinations. We’ve compiled the second edition of this report so that those looking to invest in gateway cities in EMEA regions can quickly and easily understand pricing and market conditions.
The overall European hotel investment volume was down -15% y/y for Q1 2017. Germany, Italy and Spain, however, bucked the trend and all recorded growth based on Q1 2016. Some of the key findings to consider are: Germany recorded its highest Q1 investment volume since records began (€1.12 billion). The UK is beginning to see portfolio break-ups; resulting in larger single assets coming to the market. Opportunistic capital is increasingly targeting CEE markets.
Europe commercial real estate investment totalled €56.1bn in Q1 2017; €259.0bn TTM. Trading activity in continental Europe increased despite elections in several notable markets. A total investment volume of €39.9bn was recorded; up 12% on Q1 last year. Czech Republic, Germany, Hungary, Spain and Sweden all had a record Q1.
The 2017 CBRE European Occupier survey covered 131 companies. Nearly 90% of the companies surveyed are headquartered in either Europe or North America, and two-thirds have a remit that is either global or EMEA-wide. The survey covers a range of sectors, with four dominant components: technology and telecoms, banking and finance, professional services and manufacturing.