European real estate investors under pressure to act

The European real estate industry will remain at the mercy of fiscal policy over the coming months, reported Union Investment.

A total of 67 percent of respondents expect the European Central Bank’s decision to keep the base rate low will lead to a further decline in initial net returns on real estate deals. Despite rising prices, 57 percent of survey participants believe the annual transaction volume in the European core markets will remain the same or even increase slightly.

Rises in yields possible for shopping centers and logistics properties

In terms of forecast yield performance over the next 12 months, the outlook varies for the different property types. Around 40 percent of real estate players anticipate that initial net returns on shopping centers and logistics properties will start to rise again. By con