As part of our strategic partnership with BNP Paribas Real Estate, we are sharing the Europe CRE 360: Economic Outlook and Real Estate Perspectives report.
We highlight some of the main points of the analysis led by Samuel Duah, Head of Real Estate Economics at BNP Paribas Real Estate:
– The main European economies are showing signs of recovery in the first half of the year, with the performance of Spain and the United Kingdom standing out, while Germany continues to show a slower recovery. The continued improvement in real incomes and the normalization of borrowing costs should benefit the acceleration of economic growth across Europe in 2024.
– Regarding the real estate sector, the volume of investment in Europe hit a low in the first quarter, followed by a recovery in the second quarter, although still considerably below the average of the last five years. The ECB’s interest rate cut last June was the cause of this slight recovery, which may signal the end of the restrictive monetary policy.
– Offices continue to attract the largest volume of capital, but all asset classes show a decrease in the volume of investment, with the sole exception of hotels.
– Prime yields remained stable across all asset classes and this trend is expected to continue in the second half of the year, although some markets will see slight compression towards the end of the year.
Download the Europe CRE 360 report and find out more about the current outlook and forecasts for the coming years for the metrics of the different real estate markets and sectors in Europe.
