LONDON, October 4, 2017 – European investors have been riding the wave of economic recovery for eight years, but eventually we expect that wave to make landfall. The commercial real estate (CRE) market is cyclical in nature, and the CRE boom that we have seen since the end of the Great Financial Crisis (GFC) is bound to come to an end eventually – but likely with a soft landing, not another crash.
Despite uncertainties following the Brexit vote, the economic and CRE news remains encouraging throughout Europe. The wave is continuing as investors in all the markets surveyed by Situs RERC reported that plenty of cash is still available for investment. They attribute this at least in part to the ECB’s decision to keep interest rates low and continue quantitative easing (QE).
The current issue of the Situs RERC Real Estate Report – European Edition provides insight into the current state of the European economy and CRE, 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.
To download the full report, please click here.
Taco Brink, Managing Director of Situs RERC, states, “In the UK, 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. These trends are overriding understandable concerns about the short- and long-term effects of Brexit.”
“Germany has a stable political situation, a strong economy, low unemployment, low interest rates and no inflation,” says Wilhelm Hammel, Managing Director of Situs. “This has led to Germany overtaking the UK as the preferred European CRE investment location.”
Other highlights from the report include:
ABOUT SITUS AND SITUS RERC
Situs has been the premier global provider of strategic business solutions for the finance and commercial real estate industries for over 30 years. Situs RERC, a wholly owned subsidiary of Situs, is one of the longest-serving and most well-recognized national firms devoted to valuation management and fiduciary services, appraisal and litigation services, and research, risk analysis and publications. A rated servicer with Moody’s, Fitch and Morningstar, Situs has more than $165 billion of assets under management and is ranked a top 20 servicer in multiple categories by the Mortgage Bankers Association. In 2016, Situs received a second consecutive “Advisor of the Year” award by Real Estate Finance & Investment magazine, and the “Capital Advisor Firm of the Year” award by Property Investor Europe. In 2017, the firm won the “Industry Contributor of the Year” award from Real Estate Finance & Investment magazine.