How will real estate develop in Europe
Analysts of consulting firm CBRE conducted a survey of 400 businessmen and companies operating on the territory of the European Union. According to the survey results it is possible to say that by the end of this year investments in real estate in Europe may grow by 5%.
According to the survey, about 60% of investors are planning to buy more property in the EU, which shows the optimistic moods that prevail in the market.
75% of respondents who plan to increase their investments in European real estate expect that the volume of capital this year will exceed last year’s figures by 10%. However, not all countries are recovering evenly. For example, in the UK, 80% of investors plan to increase investment, of this group of respondents about 50% expect to increase profits by 10%. Although businessmen from France also expect the market to rise, they are more pessimistic than Britons. Here, investors fear a decrease in buyer activity by 20%, which may be associated with strict quarantine restrictions, which have long been in France. And analysts at CBRE suggest that sentiment in the country may change in the near future, when the risk of a new wave decreases.
Germany is showing good rates of recovery in the real estate market. This is confirmed by the results of 2020, when the volume of capital inflows into the segment decreased by only 5%, and the figure for the whole of Europe was 17%. Germany is followed by the Netherlands and France, although the latter showed the greatest decline among other European markets in 2020. Good results are demonstrated by Switzerland, Great Britain, Sweden and Norway.
Small companies predict that acquisitions in the market will increase, but not by much. But investors, who manage large amounts of assets, expect large sales, which indicates their positive sentiment.
Traditionally, London remains the most promising market for investment in real estate. In addition to the British capital, cities such as Berlin, Amsterdam and Paris are attractive. They are followed by Hamburg, Warsaw, Lisbon and Zurich.
Despite the outlook, there is still uncertainty around the world, which has investors turning their attention to fixed income. According to 55% of those surveyed, this option is the most acceptable in the current state of affairs.
German investors prefer low-risk projects, with about 57% of respondents using Core and Core+ strategies. 29% focus on value-added assets, which primarily target property owners and operators. The majority of these investors are from the United Kingdom and France.