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European economic recovery will lead to strong real estate growth

by Zoe Loza

Europe, still in the early stages of economic recovery, is expected to see strong job growth leading to a higher demand for real estate, according to a recent report published by Deutsche Asset & Wealth Management. Over the next five years, logistics will be one of the strongest performing sectors across Europe, and the southern Europe markets will begin to outperform the rest of Europe in other sectors, based on strong rental growth.

The United Kingdom is currently the most active market across the board, though other regions heavily populated with tourists are seeing strong returns in high street retail. France, particularly Paris, is seeing historical highs in this sector, though the country is set to be one of the weaker all-around performers throughout the next five years. 

The office vacancy rate across Europe is projected to drop to around 10 percent at the beginning of this year from 10.5 percent. The top-performing office market will be Spai

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