2020 investment levels to remain around 2019 levels in continental Europe

CBRE has predicted that 2020 real estate investment will remain at around 2019 levels in continental Europe, with a possible rebound in the United Kingdom, in its Real Estate Market Outlook 2020 for EMEA.

CBRE expects trade tensions and Brexit-related uncertainties to continue in 2020, which will impact euro area GDP growth, leaving it modestly positive at 1 percent per annum through 2020 and 2021.

However, central banks have reverted to a “more accommodative approach”, according to the report. This includes the ECB’s resumption of quantitative easing, a move that CBRE says reinforces its forecast of lower interest rates for longer. This will support a real estate premium over government bonds, while lower yields from real estate may also mean investors reduce their return requirements, or take on greater risk.

CBRE has also revealed that office leasing was down in 2019 compared with 2018, due to slower economic growth and office-based employment