IREI – Current state of the European economy and CRE: Situs report

By: Jody Barhanovich

Situs, a global provider of strategic business solutions for the finance and commercial real estate industries, has released its Situs RERC Real Estate Report – European Edition.

The report provides insight into the current state of the European economy and commercial real estate, including analyses of the major asset classes and European regions. Situs RERC surveyed experts throughout Europe and culled data from hundreds of CRE valuations to provide data on investment rates and investor sentiment.

“In the United Kingdom, the economy and CRE are benefiting from loose economic policies, a weak pound sterling and an influx of foreign investors looking for places to park their money for the long term,” said Taco Brink, managing director of Situs RERC. “These trends are overriding understandable concerns about the short- and long-term effects of Brexit.”

Some key highlights of the report include:

  • Ireland and Spain have had great economic growth in recent years, even though the unemployment rate in Spain remains above 17 percent.
  • The Netherlands is the logistics hub for Europe and highly dependent on foreign investment.
  • Underwriting standards of debt capital have remained stricter than underwriting standards of equity capital.
  • The recommendation to sell across Europe remained by far the best investment option during Q3 2017, significantly more than a year ago. Only in Mediterranean countries did investors outweigh buying, over holding or selling properties.

You can find the full Situs RERC Real Estate Report – European Edition here.