High investment activity in Europe to continue in 2017 – C&W
16:45
With bond prices weakening and investors looking for safe but growth-orientated opportunities, the commercial real estate market in Europe is set to continue to witness a strong investment activity this year, according to the latest report by Cushman & Wakefield. Investment volumes are expected to increase by six percent, with Asia likely to overtake North America as the main source of capital flowing onto the continent, the study said. “We predict the next 12 months will be a ‘Year of Tiers’ as some investors focus on tier one gateway cities, while others look to tier two markets. This will typically involve an aversion to macro risk so they will maintain their focus on the better managed and more stable economies,” said David Hutchings, the head of investment strategy, EMEA capital markets, at Cushman & Wakefield.
The report has identified Germany (led by Berlin), the Nordics and Spain (notably Barcelona and Madrid) as some of the key growth-offering areas and pointed to London and Paris as locations that will continue to be targets for investment this year. Central and Eastern Europe will also attract investor attention in 2017. “Our 2017 outlook for Poland envisages a continuing downwards pressure on prime yields in all asset classes, where core investors’ focus will be on Warsaw CBD offices with sustainable rent levels, dominant retail schemes as well as logistics centers with secure, long-term income,” said Soren Rodian Olsen, a partner at Cushman & Wakefield in Poland.
