As part of our strategic partnership with BNP Paribas Real Estate, we share the European Property Market: Outlook H1 2023 report.
We highlight some of the main points of the analysis made by Samuel Duah, Head of Real Estate Economics, at BNP Paribas Real Estate:
- 2022 was a tumultuous year for the global economy and European real estate. The prevailing mood is now one of cautious optimism, as the latest macroeconomic data is encouraging. The prevailing mood now is one of cautious optimism as recent print of key macroeconomic data, both hard and soft, has been encouraging. Visibility on inflation – and hence interest rates – has improved for 2023, kindling hope that the slowdown in economic activity may be shallower than had been feared during the second half of 2022.
- We see continued repricing in the real estate market in 2023, but the worst may be behind us. Moreover, the repricing will be more differentiated among and within sectors with ongoing structural changes at the heart of it. For example, we see an accelerated polarisation between the performance of prime and secondary assets driven by sustainability. In logistics, the occupational market remains resilient, but the investment market continues to reel from the considerable increase in the cost of debt.
- These differences in prospects for the individual sectors could drive investors to re-weight their portfolios.
Download the European Property Market: Outlook H1 2023 report and learn more about the current view and forecasts for the coming years, regarding the key metrics across markets and sectors in Europe.